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Drought and Water Policy: Implications for Colorado

Three processes coincided in the first years of the 21 st Century to create a water crisis in parts of the western United States. Rapid population growth, decline in construction of new water projects, and deep drought shocked water officials who thought their supplies were secure for at least a few years, and unexpected and drastic curtailments in water use were required. These experiences have been especially acute in Colorado, where parts of the state are experiencing the worst drought water shortages since settlement. The first part of the paper outlines the causes and nature of the drought water shortages and the second identifies policy needs. It is argued that if water security for regions can be achieved, building new storage should be easier because more public support will be available. In addition to more and "smarter" storage, the state needs more workable water markets. The idea of balance among regions will also help with that goal because regions can agree externally and internally on water transfers, thus facilitating water markets. Colorado has enough water for its future if it acts wisely. However, new institutional mechanisms to promote the interests of the state's regions can work to improve water availability within and among regions and look after environmental values.