Southwest Water Leaders Sign MOU to Explore Framework for Interstate Exchanges

Today, the Bureau of Reclamation and agencies in California, Nevada and Arizona signed a Memorandum of Understanding (MOU) at the Claude “Bud” Lewis Carlsbad Desalination Plant to jointly explore new water supply solutions for the Colorado River Basin.

The MOU aims to improve long-term water management in the Colorado River Basin by advancing discussions to develop a framework that could allow for interstate water exchanges. The goal is to discuss a pathway that would allow agencies to partner across state borders on desalination, recycled water and other water supply projects that would benefit multiple states.

The MOU was signed by the Bureau of Reclamation, San Diego County Water Authority, Metropolitan Water District of Southern California, Southern Nevada Water Authority, the Arizona Department of Water Resources, Central Arizona Project and Salt River Project.

Interstate exchanges can be an important next step in successfully managing limited Colorado River supplies in the future by allowing shared financing of new supply projects that, through operational flexibility, could provide water to participating agencies when they need it most – taking advantage of variations in local hydrology across the Basin and other factors. Future water exchanges would use existing infrastructure and avoid costly new infrastructure without changing or reallocating existing rights or obligating parties to projects.

Long-term drought has reduced Colorado River system water storage to about 36% of capacity, and the combination of the lowest snowpack on record and record-breaking heat has further intensified drought conditions. These compounding factors create elevated risks to essential water and power infrastructure that supply water to more than 43 million people, underscoring the need for near-term actions to balance supply and demand.

What the signatories said:

“Next-generation strategies in the face of climate volatility must include interstate partnerships that deliver water where it’s needed most.  We appreciate the collaboration with the Bureau of Reclamation and all the other agencies involved. New ideas are challenging to implement, but it’s in everyone’s best interest to make this work.” – Dan Denham, General Manager, San Diego County Water Authority

“Across the Colorado River Basin, water users are developing new supply projects to reduce reliance on the river. But some of the larger projects require significant investment. The MOU signed today demonstrates our commitment to discussing how to develop flexible partnerships across borders to pool funding, advance projects, and allow water to be shared when and where it is needed most.” – Shivaji Deshmukh, General Manager, Metropolitan Water District of Southern California

“As Colorado River conditions grow more challenging, regional partnerships like this are an essential tool to help ensure sustainable water supplies. This agreement allows us to explore forward-thinking, strategic investments that will strengthen water resilience in Southern Nevada and across the Lower Basin.” – John Entsminger, General Manager, Southern Nevada Water Authority

“This is an important step in addressing the goal of augmenting the water supplies of the Colorado River by creating a mechanism to deliver those supplies through an exchange using existing infrastructure. It represents the kind of innovation that Arizona and its Lower Basin partners believe is needed from all the Colorado River states to help stabilize the system in the long term.” – Tom Buschatzke, Director, Arizona Department of Water Resources

“This MOU is important because we are agreeing to discuss innovative ways to help each other and secure our future water supplies. When you have good partners, you can find collaborative opportunities that benefit all.” – Brenda Burman, General Manager, Central Arizona Project

“This agreement demonstrates the Lower Basin states’ commitment to work together to explore ways to supplement our water supplies as we continue to experience Colorado River shortages. SRP supports collaborative and strategic options and projects to develop and deliver resilient and reliable water for all of Central Arizona.” –  Leslie Meyers, Salt River Project Associate General Manager and Chief Water Resources Executive