Basin Brief End of July Summary

The final days of July brought the clearest picture yet of how the federal government may manage the Colorado River after 2026.

The Bureau of Reclamation released its Final Environmental Impact Statement for future operations at Lake Powell and Lake Mead, setting up a 10-year framework for managing the river through 2036. The current operating rules expire after 2026, and the Basin states have not reached a long-term agreement on how future shortages should be shared.

The federal framework does not settle every question. Instead, it gives Reclamation room to adjust operations over shorter periods as river conditions change. The Department of the Interior said the preferred alternative allows for annual Lake Powell releases between 5 million and 12 million acre-feet, Lower Basin shortages of up to 3 million acre-feet, and new options to store conserved water in Lake Powell and Lake Mead for future use.

For Arizona, the proposal carries serious consequences. The Associated Press reported that Arizona, California, and Nevada would share reductions under the federal plan, while the Upper Basin states would not face mandatory cuts for now. The Lower Basin could be required to reduce use by up to 3 million acre-feet annually through 2036, depending on river conditions.

Arizona officials pushed back quickly. Gov. Katie Hobbs called parts of the federal framework unacceptable, and the Arizona Department of Water Resources said reductions of up to 3 million acre-feet per year, in priority, would harm Arizona water users and the state economy. ADWR said it wants the final Record of Decision and operating guidelines to follow the May 1 Lower Basin Proposal, which includes shared reductions among Arizona, California, and Nevada of 1.25 million acre-feet each year, plus 700,000 acre-feet of system conservation water.

Central Arizona Project also responded to the FEIS, saying future rules must recognize Arizona’s existing rights and the realities of how Colorado River water is used in the state. CAP delivers Colorado River water to central and southern Arizona, including cities, agriculture, and tribal users. Any major reduction to CAP supplies would affect communities differently depending on their water priority, stored supplies, and access to other sources.

Arizona communities were already preparing before the FEIS was released. KJZZ reported that Salt River Project opened the Gilbert Road Pipeline, a $25 million project that will help Valley cities access stored groundwater during dry times. The pipeline connects underground storage near the Granite Reef Underground Storage Project to the Arizona Canal, making it easier for cities to recover water they stored for shortage conditions.

That project also involved the Salt River Pima-Maricopa Indian Community. KJZZ reported that the pipeline crosses a portion of the community near Mesa, and President Martin Harvier spoke at the ribbon-cutting, connecting the project to the long history of canal systems in the Valley.

Stored water and infrastructure are becoming more important as cities look for backup supplies. City of Phoenix officials said the city is prepared for potential Colorado River cuts because of its diverse water portfolio, conservation work, underground storage, and investments in infrastructure. Other Arizona cities are also turning to conservation, including turf conversion programs and water-saving rebates.

In Queen Creek, local reporting said turf conversions are saving water and money. Fox 10 reported that Gilbert residents are seeing higher water rates, showing how water planning costs are reaching household budgets. KTAR reported that Kearny expects its current water supply to last through this year, but 2027 remains uncertain.

Drought conditions also continued across Arizona. Payson Roundup reported that Arizona has been designated a drought disaster area, while other local reports showed concern in rural communities that rely on limited supplies or groundwater. These conditions show how water shortages are not only a Colorado River issue. They also affect small towns, farms, local utilities, and private well users.

Lake Powell remained one of the most urgent concerns. KTAR reported that Lake Powell could lose the ability to generate hydropower by early 2027 if water levels continue to fall. CBS 5 Arizona’s Family also reported that the Colorado River crisis threatens both water supply and hydropower for millions of people. Low reservoir levels affect more than storage. They can affect dam operations, electricity generation, water deliveries, and the ability to manage future dry years.

Scientists are also working to better understand how much water is being lost from the system. Colorado Public Radio and KUNR reported that researchers are expanding evaporation monitoring across the Colorado River Basin. The work is meant to give water managers better information about how much water is lost from reservoirs and other parts of the system, an issue that becomes more important as Lake Mead and Lake Powell remain low.

The pressure is being felt outside Arizona as well. Nevada Independent reported that Nevada could lose a significant share of its Colorado River water under the federal framework, while Las Vegas-area reporting focused on conservation and what continued cuts could mean for Southern Nevada. California outlets reported that future Colorado River reductions could affect Southern California water planning, including agencies that depend on Colorado River supplies.

Public concern is also rising. A Walton Family Foundation poll found that residents across all seven Basin states view shrinking Colorado River supplies as a priority. KJZZ reported that Arizonans are worried about water and want elected officials to respond. Those findings reflect what many local water stories showed throughout July: the Colorado River issue is no longer limited to technical negotiations. It is showing up in city budgets, water rates, infrastructure projects, agriculture, energy, and household concerns.

By the end of July, the federal FEIS became the main turning point. It did not end the negotiations, but it set the stage for the next federal decision. Reclamation will still issue a Record of Decision and operating guidelines, which will provide more detail on how the framework will be used.

For Arizona, the next phase will be about limiting the deepest cuts, protecting legal rights, and completing agreements tied to the Lower Basin proposal. For the wider Basin, the question remains whether the states can reach a durable agreement before federal rules decide more of the river’s future.

What does this mean for CRIT?

For the Colorado River Indian Tribes, the FEIS matters. It deals directly with future operations at Lake Powell and Lake Mead, the two reservoirs that shape much of the Colorado River system.

The FEIS also recognizes that the Colorado River serves Tribal Nations, agriculture, cities, hydropower, and ecosystems. That is important for CRIT because the Tribe is both a sovereign Tribal Nation and a major agricultural water user along the river.

The July reporting on the SRP pipeline also shows how infrastructure determines whether stored water can actually be used during dry times. For CRIT, that same principle matters. Senior rights are strongest when they are supported by planning, delivery systems, and clear local water management.

As Reclamation prepares the Record of Decision and future operating guidelines, CRIT has a direct interest in how the federal government handles shortage rules, Tribal inclusion, agricultural water use, conservation opportunities, and river health.

CRIT’s Water Code and Water Resiliency Act provide a local framework for managing Tribal water resources as Basin conditions change. The Tribe’s Personhood Resolution also reflects CRIT’s cultural and environmental connection to the Colorado River.

Sources

Bureau of Reclamation
https://www.usbr.gov/ColoradoRiverBasin/post2026/final-eis/index.html

U.S. Department of the Interior
https://www.doi.gov/pressreleases/reclamation-publishes-final-environmental-impact-statement-future-colorado-river

AP News
https://apnews.com/article/colorado-river-drought-reclamation-interior-arizona-california-8a5e69b34135be73224532c54d581e8a

Arizona Governor’s Office
https://azgovernor.gov/office-arizona-governor/news/2026/07/governor-katie-hobbs-releases-statement-colorado-river-final

CAP Know Your Water News
https://knowyourwaternews.com/central-arizona-project-statement-regarding-final-environmental-impact-statement-for-the-post-2026-operational-guidelines-and-strategies-for-lake-powell-and-lake-mead/

City of Phoenix
https://www.phoenix.gov/newsroom/water-services-news/phoenix-prepared-as-federal-framework-outlines-potential-cuts-to.html

KJZZ
https://www.kjzz.org/kjzz-news/2026-07-30/new-srp-pipeline-will-boost-access-to-stored-groundwater-in-dry-times

CBS 5 Arizona’s Family
https://www.azfamily.com/2026/07/28/colorado-river-crisis-threatens-water-supply-hydropower-millions/

KTAR News
https://ktar.com/arizona-water-news/lake-powell-generate-power/5892713/

KTAR News
https://ktar.com/arizona-water-news/kearny-water-supply-2027-questionable/5893084/

Queen Creek Tribune
https://www.queencreektribune.com/news/turf-conversions-saving-big-bucks-for-queen-creek/article_1252699a-c12f-4d66-85c2-9c08e3008e7f.html