The Nevada Supreme Court heard arguments Tuesday in a case weighing how state regulators should consider “public trust” values — the environment or recreation — when the sustainability of lakes or rivers could be harmed by how the state has allocated water rights.

The questions before the court stem from ongoing federal litigation over the use of water in the Walker River. But the case has received significant attention because it could provide an opportunity for the state’s top court to bolster legal protections for the environment. At the same time, agricultural groups, businesses and municipal water users fear a broad ruling could upend their existing water rights.