In 2022, the U.S. Department of the Interior broke this stalemate with a plea and then a demand for the states to do more, faster, to protect the river. Then, in April 2023, the agency released a draft supplemental environmental impact study that offered two alternatives – one more favorable to California, the other to Arizona. The message to states was clear: If you can’t reach a consensus, we’ll act to protect the river. Intense negotiations followed, leading to the May 22 agreement.

The new cuts center on California, Nevada and Arizona because they draw their shares of the river mostly from Lake Powell and Lake Mead. The states have agreed to reduce their consumption of Colorado River water by 3 million acre-feet by 2026, which represents about 14% of their combined allocations.

This pact temporarily protects water supplies for cities, farmers and tribes. The U.S. Bureau of Reclamation immediately accepted the proposal and committed to pay for steps that are expected to conserve 2.3 million acre-feet of water with money from the Inflation Reduction Act. For example, the Gila River Indian Community will receive $50 million from the Lower Colorado River Basin System Conservation and Efficiency Program in each of the next three years for improvements such as new pipelines.

It’s now up to California, Nevada and Arizona to divvy up the remaining 700,000 acre-feet of cuts. I expect that water reallocation, with water moving from lower-value to higher-value uses, will play a key role. Water marketing – negotiating voluntary sales or leases of water – is a tool to facilitate that transition.

Most of the water involved in the recent agreement will be freed up by one party paying another party to use less – for example, cities paying farmers to conserve water that the cities can then use. That’s the essence of water marketing. The agreement will provide funding to irrigation districts, tribes and water providers, who will then figure out how to generate the savings each organization has committed to deliver.

The next steps are for the states to begin discussions about replacing guidelines that currently govern the sharing of Colorado River water, which expire in 2026. These discussions will be more painful because federal funding will expire and cuts will be more severe. Thus far, the Upper Basin states – Wyoming, Colorado, Utah and New Mexico – have not had to endure significant water use cuts. My hope is that the states will seize this three-year window as an opportunity to develop procedures and identify funding for major water reallocations.

Over the last couple of years, there have been threats to solve these issues in court. But litigation is a lengthy, costly process fraught with uncertainty. The original Arizona v. California suit was filed in 1930, and the Supreme Court did not enter its final decree until 2006.

Many legal arguments that individual basin states could present to a court rest on interpretations of vague or ambiguous Law of the River documents. The river can’t wait for the legal process to adjudicate gnarly, complicated claims made trickier by a century of statutory and case law embellishments. As I see it, negotiation and concessions leading to consensus are the only viable solution going forward.

This article is republished from The Conversation, an independent nonprofit news site dedicated to sharing ideas from academic experts. The Conversation has a variety of fascinating free newsletters.

Read more:
Western river compacts were innovative in the 1920s but couldn’t foresee today’s water challenges

As climate change and overuse shrink Lake Powell, the emergent landscape is coming back to life – and posing new challenges

Robert Glennon does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.