Water leaders across the Southwest are looking at new ways to manage limited Colorado River supplies as the Basin continues to face drought, low reservoir levels, and uncertainty over future rules. Recent reports show that agencies are no longer only talking about emergency cuts. They are also exploring interstate exchanges, desalination, recycled water, local conservation, rate increases, and new federal leadership as the Colorado River system moves closer to a critical point.
Arizona Water News reported that the Bureau of Reclamation and water agencies from Arizona, California, and Nevada signed a Memorandum of Understanding at the Claude “Bud” Lewis Carlsbad Desalination Plant in California. The agreement is meant to explore a framework for future interstate water exchanges, allowing agencies to discuss partnerships around desalination, recycled water, and other supply projects that could benefit more than one state.
The MOU was signed by 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 release, future exchanges would use existing infrastructure and would not change or reallocate existing water rights. Instead, the goal is to create more flexibility so agencies can share the benefits of new water supplies when and where they are needed most.
That kind of flexibility is becoming more important as long-term drought has reduced Colorado River system storage to about 36% of capacity. Arizona Water News reported that record-low snowpack and record-breaking heat have added more pressure to the river system, increasing risks to the water and power infrastructure that millions of people depend on.
NPR reported that San Diego, once one of the cities most dependent on the Colorado River, now has excess water it may be able to sell or exchange. The city has invested in water recycling, conservation, and the Carlsbad Desalination Plant, which produces about 50 million gallons of drinking water each day. The plant supplies about 7% to 10% of the region’s water.
The idea would not involve physically sending desalinated water to Arizona or Nevada. Instead, San Diego could use more desalinated water locally and leave some of its Colorado River supplies in Lake Mead for others to use. This kind of exchange could help the larger system by keeping more water in the reservoir while allowing participating agencies to benefit from new local supplies.
At the federal level, the Bureau of Reclamation may soon see new leadership. KJZZ reported that water leader Aubrey Bettencourt is likely to be nominated to run Reclamation, the top federal agency involved in Colorado River operations. Scott Cameron currently serves as the acting leader of Reclamation and oversees the agency at a time when decisions about Lake Mead, Lake Powell, and post-2026 river rules are especially important. Cameron has previously visited the CRIT Reservation, and hopefully CRIT will get the opportunity to meet and build a working relationship with the next Reclamation leader.
Local communities are also preparing for a future with less reliable Colorado River supplies. KJZZ reported that Scottsdale approved a 4.5% water rate increase, with part of the funding going toward additional water sources. Scottsdale receives about 70% of its water from the Colorado River, and Arizona is expected to face more reductions in its river allocation. The city is considering several options, including advanced water purification, groundwater from Harquahala Valley, and expanding Bartlett Dam on the Verde River.
Utah Public Radio reported that Lake Powell may be in worse condition than its surface elevation suggests. A new report from Colorado River experts warns that the Basin’s major reservoirs are sliding toward “devastating consequences” if water levels continue to drop. The report said another dry year could push Lake Powell and Lake Mead toward “run-of-the-river” conditions, meaning the reservoirs would lose much of their ability to store water for the future and would mainly pass water downstream.
The Colorado River’s future will depend on whether states, tribes, federal agencies, cities, and water users can agree on rules that reduce demand while protecting the river itself. New supply projects and flexible exchanges may help, but they cannot replace the need for serious conservation, fair long-term management, and meaningful tribal involvement.
What does this mean for CRIT?
For the Colorado River Indian Tribes, the water news updates show how quickly the future of the river is being reshaped. Agencies across Arizona, California, and Nevada are discussing new ways to exchange water, cities are paying more to secure future supplies, and federal leaders are preparing for decisions that could affect Lake Mead, Lake Powell, and the entire Colorado River system.
Because CRIT holds senior rights to the Colorado River, these conversations are directly connected to the Tribe’s future. Interstate exchanges, desalination projects, and local supply agreements may be framed as creative solutions, but they must be developed in ways that respect existing rights, tribal sovereignty, and the legal priority of tribes with senior water rights.
Sources
Arizona Water News
https://azwaternews.com/
Utah Public Radio / KJZZ
https://www.upr.org/environment/2026-06-03/lake-powell-colorado-river-supply