Arizona and Nevada Forge Historic Colorado River Water Exchange with California]
San Diego could sell portions of its Colorado River water rights to Arizona and Nevada under a newly announced agreement, addressing critical supply shortages in inland states. The San Diego County Water Authority has surplus capacity due to a desalination plant opened a decade ago, and would reduce its river withdrawals rather than physically transport water eastward.
This marks the first large-scale interstate water trade involving Colorado River allocations. Officials emphasized the urgency given declining reservoir levels that threaten water supplies for 40 million people and 5.5 million acres of farmland across the West. The agreement establishes a framework where the utility and desert states must still resolve pricing and volume details through legal and managerial negotiations.
“The urgency is real,” said Scott Cameron, acting director of the Bureau of Reclamation. “Today we are signing a short document that represents a potential great leap forward for the water security of the people of the Southwest.”
The Colorado River basin faces record-low flows following historic drought conditions. Lake Powell’s inflow is projected at 13 percent of normal this year, with consecutive dry winters likely pushing reservoir levels to their lowest since the 1980s. These declining levels risk infrastructure damage and threaten hydroelectric operations.
The seven Colorado River states—California, Arizona, Nevada, New Mexico, Utah, Colorado, and Wyoming—have yet to finalize shared reduction targets after missing a February 14 deadline. A federal plan for future water allocation is expected in July.
The Claude “Bud” Lewis Carlsbad Desalination Plant supplies up to 10 percent of San Diego County’s water, producing 54 million gallons daily via reverse osmosis. The facility cost $1 billion to build, contributing to rising customer rates. San Diego has previously sold water to utilities in Riverside County.
Arizona faces the most severe cuts due to junior water rights. “Good partners build good solutions,” said Brenda Burman of the Central Arizona Project, which delivers water to Phoenix.
Regional initiatives include wastewater recycling projects in Utah, Arizona, and Southern California, such as a Los Angeles-area facility that converts sewage into drinking water for 500,000 homes.
