Southwest water agencies sign MOU to explore interstate exchange framework

David Rousseau, President
David Rousseau, President
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The Bureau of Reclamation and several major water agencies in California, Nevada, and Arizona signed a Memorandum of Understanding on June 3 at the Claude “Bud” Lewis Carlsbad Desalination Plant to jointly explore new water supply solutions for the Colorado River Basin.

The agreement aims to improve long-term management of the Colorado River Basin by developing a framework that could allow for interstate water exchanges. The goal is to enable partnerships across state borders on desalination, recycled water, and other projects benefiting multiple states. Signatories include the Bureau of Reclamation, San Diego County Water Authority, Metropolitan Water District of Southern California, Southern Nevada Water Authority, Arizona Department of Water Resources, Central Arizona Project, and Salt River Project.

According to the agencies involved, interstate exchanges may help manage limited Colorado River supplies by allowing shared financing for new projects using existing infrastructure. This approach seeks to avoid costly new construction while not changing or reallocating existing rights or obligating parties beyond project discussions. Persistent drought has reduced storage in the Colorado River system to about 36% capacity; record-low snowpack and extreme heat have further intensified conditions that threaten essential water and power infrastructure serving over 43 million people.

Dan Denham, General Manager of San Diego County Water Authority, 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.”

Shivaji Deshmukh from Metropolitan Water District said: “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.” John Entsminger from Southern Nevada Water Authority added: “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.”

Tom Buschatzke from Arizona Department of Water Resources said: “This is an important step in addressing the goal of augmenting the water supplies…by creating a mechanism…using existing infrastructure.” Brenda Burman from Central Arizona Project said: “This MOU is important because we are agreeing to discuss innovative ways…and secure our future…” Leslie Meyers from Salt River Project stated: “This agreement demonstrates…commitment…to work together…as we continue experiencing shortages.”



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