Generally, the city of Needles holds three types of rights in Colorado River water: Present perfect rights, surplus water rights and rights under the lower Colorado River Water Supply Act. These rights are guaranteed in a series of agreements with the federal government and other holders of Colorado River rights; generally states, large water districts, and occasionally Mexico. According to city staff, due to changing circumstances with respect to Colorado River water and especially the looming scarcity due to prolonged drought, there are periodic rounds of renegotiation of the Colorado River agreements, some of which Needles is required to sign.