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Deadlock Over Colorado River Raises Prospect of Federal Water Reallocations

The Bureau of Reclamation plans to issue updated allocation options in mid-July that could impose steep, uneven cuts or prompt lawsuits.

Overview

  • Negotiations among the seven basin states remain stalled along Upper Basin and Lower Basin lines, with the Upper Basin rejecting the Lower Basin’s May 1 proposal for voluntary, spread-out cuts.
  • The Bureau issued five alternative plans in January and will publish an updated plan by mid-July with final guidance in August if states do not reach agreement.
  • A federal “no deal” model under consideration could impose sharply asymmetric cuts, with one scenario projecting up to a 77% reduction in Arizona’s Colorado River supply.
  • Arizona has increased its legal preparations by adding $6 million to its Colorado River legal fund, bringing the total to $9 million and hiring outside counsel to prepare for likely litigation.
  • The dispute reflects deeper risks: long-term drought, record low reservoir levels, and large groundwater losses have shrunk supply and raise the threat of wider impacts on cities, farms, and hydropower.