ARIZONA — California will reduce its water use by 440,000 acre-feet annually, while Nevada will reduce its use by 50,000 acre-feet annually. Mexico will reduce its Colorado River intake by 250,000 acre-feet annually under a U.S.-Mexico treaty. The upper basin states of Colorado, Utah, Wyoming, and New Mexico do not face mandatory water cuts under the current plan. The plan allows for larger cuts depending on future conditions.

"We've been in this 26-year prolonged drought period," said Andrea Travnicek, the Interior Department's assistant secretary for water and science. "We continue to see a prolonged drought in our future. So continuing to work together as a whole within the basin is going to be extremely important."

The current rules governing the use of the Colorado River's water are set to expire in October. Lake Mead recently reached its lowest level since it began filling nine decades ago. Lake Powell recently reached its lowest level since it began filling.

Lake Powell reached a record low on August 15. The combined storage of Lake Mead and Lake Powell is at its lowest level in nearly seven decades. If the water level in Lake Powell falls 33 more feet, the reservoir will no longer meet the levels needed to generate hydroelectric power.

"For 2027 and 2028, the reductions that are now memorialized here will provide substantial stability for folks," said Tom Buschatzke, Arizona Department of Water Resources director. "We'll continue to negotiate and figure out how we're going to operate over a longer-term period, which is what we all want."

JB Hamby, California's chief Colorado River negotiator, said the plan brings "some badly needed near-term certainty at a moment of extraordinary risk." Hamby called the plan "a bridge, not a permanent solution." Arizona Governor Katie Hobbs stated in a statement that the plan saved Arizona from forced federal cuts that would have crippled the state's economy and national security. Arizona Senators Ruben Gallego and Mark Kelly issued a joint statement expressing support for the new operating guidelines.

Arizona has set aside a litigation fund and hired a firm to defend its water rights but has not yet said whether a lawsuit is imminent. The Colorado River supplies water to an estimated 35 million to 40 million people, according to the Bureau of Reclamation. More than 70% of Colorado River water used goes to agriculture.

The Colorado River irrigates more than 5 million acres of farmland. Glen Canyon Dam generates hydroelectric power relied on by nearly 6 million households and businesses. Since 2020, average flows in the Colorado River have dropped by 32% compared with the last century. The 1922 Colorado River Compact allots 7.5 million acre-feet of water yearly to the upper basin and another 7.5 million to the lower basin.

Why It Matters

The operating plan addresses a system under severe strain, with reservoir levels at historic lows and river flows declining compared to historical averages. The agreement provides immediate operational clarity for the lower basin states and Mexico while leaving the upper basin states without mandatory cuts, maintaining the existing allocation structure established by the 1922 Colorado River Compact.

The plan serves as an interim measure before the expiration of current guidelines in October, offering stability through 2028 while negotiations for long-term operations continue. The reliance on the river for municipal supply, agricultural irrigation, and hydroelectric power generation means that any further reduction in available water or reservoir capacity carries broad economic and infrastructure implications for the region.