The Colorado River shortage conversation is starting to move from federal planning into city budgets, backup supplies, and long-term infrastructure decisions.
On Aug. 11, AMWUA reported that its member cities have been preparing for a smaller Colorado River for years. The Arizona Municipal Water Users Association represents 10 cities: Avondale, Chandler, Gilbert, Glendale, Goodyear, Mesa, Peoria, Phoenix, Scottsdale, and Tempe. Together, those cities serve about 3.7 million people, more than half of Arizona’s population.
AMWUA said the cities are entering a new era of less Colorado River water, especially as federal officials finalize operating rules for 2027 through 2036. The organization said Central Arizona Project water is at the center of that risk because many Valley cities rely on CAP deliveries.
AMWUA said city planning has focused on three main areas: efficiency, resilience, and technology. Those efforts include advanced water meters, leak detection, turf removal rebates, landscape conversion programs, reclaimed water, aquifer recharge, advanced purified water treatment, and updated development rules.
The goal is not only to use less water. It is also to reduce dependence on Colorado River supplies and build local water sources that are less tied to Lake Mead’s elevation.
Gilbert is one example of how cities are preparing. ABC15 reported that about 40% of Gilbert’s water comes from the Colorado River, and town staff expect reductions to Central Arizona Project water to begin in 2027. The town is considering a Firming Water Delivery Agreement that would give Gilbert more flexibility to access water it previously stored underground during shortages.
ABC15 also reported that Gilbert has drilled eight new wells to access backup supplies. The town’s approach reflects a broader trend in Arizona: communities are trying to make stored water and groundwater more usable before deeper Colorado River cuts arrive.
These local efforts do not remove all risk. AMWUA said no level of city preparation can completely eliminate Arizona’s vulnerability to a smaller Colorado River. More investment will be needed, especially in new water supplies, treatment technology, and infrastructure.
The cost of that uncertainty is becoming a bigger part of the discussion. The Bond Buyer reported that Arizona and Nevada officials criticized the federal Colorado River plan, while analysts said the Final Environmental Impact Statement raises the stakes for long-term water planning. The article said utilities with strong storage, conservation programs, and financial flexibility may be better positioned in the near term, but long-term credit quality will depend on how effectively water providers secure alternative supplies while keeping rates affordable.
That point matters because water planning is not only about engineering. It is also about financing. Wells, pipelines, treatment plants, recharge projects, conservation programs, and new supply agreements can take years to develop and cost millions of dollars. If Colorado River rules change every two years, cities and water agencies may have to make expensive decisions without knowing exactly how much water they will receive in the future.
California is watching the federal framework as well. Spectrum News reported that the new Colorado River proposal could mean future cuts for California. California has historically held stronger priority than Arizona in the Lower Basin, but the federal framework could still bring reductions depending on reservoir conditions and future agreements.
The uncertainty is also reaching water law. Courthouse News Service reported on a Ninth Circuit case involving companies that say California denied them due process in a water rights matter. While the case is separate from Arizona’s Colorado River negotiations, it shows how water disputes across the West are increasingly moving through courts and administrative processes.
Drought conditions are also affecting the Upper Basin. Denver7 reported that Denver Water has moved into an enforcement phase as drought conditions worsen. Customers are limited to watering lawns two days a week, and the utility has begun issuing warnings and fines for violations. Denver Water officials said the goal is to protect supplies heading into next year, when snowpack remains uncertain.
These reports show how shortage planning is becoming more practical and more expensive. Cities are storing water, drilling wells, improving technology, and changing development rules. Water agencies are looking at legal and financial risk. California is weighing future reductions. Colorado utilities are enforcing conservation because drought conditions are still affecting local supplies.
The common issue is reliability. Communities need water rules they can plan around, supplies they can actually access, and enough financial capacity to build the projects needed for a drier future.
What does this mean for CRIT?
For CRIT, the reports show why water rights, infrastructure, and financial planning all matter together.
CRIT holds senior Colorado River rights, which places the Tribe in a different position than many cities that rely on junior-priority Central Arizona Project water. Still, the broader system matters because federal reservoir operations, CAP reductions, and city water strategies can shape Arizona’s water policy environment.
The AMWUA and Gilbert reporting show that many cities are preparing by storing water, drilling wells, improving technology, and developing backup supplies. For CRIT, that reinforces the importance of not only protecting senior rights but also maintaining the infrastructure and local management needed to put water to use.
The financing discussion also matters. As water becomes harder and more expensive to secure, cities and agencies may face higher costs for wells, pipelines, treatment plants, and conservation programs. Those same pressures can influence future regional water discussions and partnerships.
The Denver Water reporting shows that drought is not limited to Arizona or the Lower Basin. Water providers across the Basin are taking steps to reduce use now in order to protect supplies for the future.
Sources
AMWUA
https://www.amwua.org/blog/how-the-amwua-cities-have-been-preparing-for-a-smaller-colorado-river
Spectrum News 1
https://spectrumnews1.com/ca/la/environment/2026/08/11/new-colorado-river-proposal-could-mean-water-cuts-for-california
Courthouse News Service
https://www.courthousenews.com/companies-say-california-denied-them-due-process-in-ninth-circuit-water-rights-case/
ABC 7 Denver
https://www.denver7.com/news/drought/denver-water-moves-to-enforcement-phase-as-drought-conditions-worsen
The Bond Buyer
https://www.bondbuyer.com/news/arizona-nevada-criticize-federal-plan-for-colorado-river