Colorado Water Law
The principle governing Colorado water use comes down to what’s commonly called “first in time, first in right,” or prior appropriation. The system arose during settlement and the Gold Rush, promising people who put water to “beneficial use” — mining, farming, raising livestock or supplying communities — that if new users moved in, their water couldn’t be cut off. That water right is considered a legal property right to use a maximum amount of a public resource, whether surface or groundwater.
In times of short supply, court-decreed water rights with earlier dates (senior rights) can use water before rights with later dates (junior rights). The Colorado Division of Water Resources (DWR) administers water rights — satisfying senior users first and, where necessary, curtail- ing junior or undecreed uses. Since 1879, disputes about water right priority dates and amounts have been settled by Colorado water courts. There are seven water divisions in Colorado, based on the state’s watersheds, with a water court and a DWR division engineer in each.
Through water court, water rights can also change locations and types of use as long as that change will not “injure” water rights held by others. Injury to water rights occurs when an action may cause a water right holder to lose water in the amount, time or place they’re entitled to use it. The law also allows for water rights to be abandoned. So, if a water right is not being used, it is subject to consideration for abandonment.
Over the decades, state lawmakers have officially recognized new “beneficial uses,” including in-channel water for recreation and instream flows for the environment. Only the Colorado Water Conservation Board can hold rights for instream flows, and only government entities can hold recreational diversion rights. Across Colorado, 28 riverside communities have secured at least conditional water rights for flows that allow for recreation, often accompanying a whitewater park. In 2022, after nine years of work, Glenwood Springs was awarded Colorado’s most recent recreational in-channel diversion to construct a boating park.
Number of natural lakes, in addition to 9,700 stream miles, that are protected with instream flow water rights or natural lake level water rights held by the Colorado Water Conservation Board.
In the News: Exemptions
Even though Colorado’s “first in time, first in right” priority system is the foundation of water allocation in the state, there are several exemptions that allow water users to operate outside this system. These exemptions allow certain water uses despite potential impacts on senior water rights.
The most common exemption is the exempt well, which allows property owners that don’t have other water supply options and meet certain
conditions, to obtain water supply for household uses. Other exemptions include fire suppression ponds, livestock water tanks, rain collection
barrels, and minor stream restoration activities.
Each of these has distinct conditions and regulations. For example, livestock water tanks must be registered with the Colorado Division of Water Resources and are only allowed on streams that are “normally dry.”
The most recent exemption was approved with Senate Bill 23-270. It exempts minor stream restoration activities, including projects designed
to stabilize banks, provided that the activity does not raise the water level above the ordinary high-water mark.
“Understanding these exemptions is important for water users to make sure that they comply and take advantage of opportunities without violating senior water rights,” says Jason Ullmann, Colorado’s State Engineer.
Where Your Water Comes From
Water loops through the world in a cycle likely familiar from a grade school science lesson: Transpiration from trees and evaporation from surface water rises and condenses into clouds, producing precipitation. Precipitation accumulates into snowpack, then melts into streams, rivers and aquifers. Surface water is positioned to evaporate and be released into the sky again. What people might forget is that it’s a closed cycle: “The amount of water is the same, always, it just moves to different places,” says Melissa Clutter, an assistant professor of geosciences at Fort Lewis College.
In Colorado, the amount of water available is rarely enough to meet all demands. The Colorado Water Plan provides a framework for helping Coloradans meet water challenges. According to the water plan, Colorado communities could need 230,000-740,000 acre-feet of additional water per year by 2050.
As water flows downstream, it carries sediment, nutrients, pollutants and other debris, which can affect water quality. A watershed is defined by an area of land where water flows through a network of drainages to a collection point like a stream, river or lake, which pools the water and everything it carries.
That means the health of forests matters to everyone downstream. As Jonathan Paklaian, executive director of the Arkansas River Watershed Collaborative puts it, “Our forest health is also our watershed health.”
Any problems for the forests, like wildfires and insect infestations that change how a forest stores snow and how water runs off become problems for water supply and quality. Making a difference for water means thinking on the scale that it flows — far downstream and across jurisdictions.
In a healthy watershed, water soaks into the ground and moves slowly through it or, in the case of snow, melts gradually out from under a thick canopy of trees. But when trees die or are burned in a wildfire, water and snow wash off quickly. Erosion cuts into more soil, and sediment washes downstream, along with wildfire ash and debris, which can clog infrastructure and pollute the water supply.
A history of suppressing wildfire has left forests thick with “fuels.” Add climate change’s warmer and drier weather, and the results are bigger, more frequent fires. Now the race is on to protect forests — and water — from catastrophic wildfire.
Source water protection now ranks as the top concern for water professionals, according to the American Water Works Association’s 2024 State of the Water Industry Report. This year, that issue surpassed concern about aging infrastructure for the first time in the report’s 20-year history.
“If we don’t have safe and reliable sources, we don’t have the ability to support public health,” Raven Lawson, AWWA Source Water Protection Committee chair, said in a press release about the report. About 60% of water utilities are implementing or creating source water protection plans according to the survey.
The Colorado Water Conservation Board’s (CWCB) Wildfire Ready Watersheds program is helping communities plan for wildfire and take measures to mitigate before they begin. Through the program, communities can receive grant funding to craft a Wildfire Ready Action Plan. Plans incorporate local data and values in order to identify and rank risks.
In the News: Linking the Past and Present
What happens in the headwaters impacts farms and cities downstream and across time, linking activities from decades ago to the present. The current project for the Arkansas River Watershed Collaborative addresses both.
High in the Arkansas River headwaters is California Gulch, a Superfund site left from mining near Leadville in the 1860s. There, little streams gather and supply Twin Lakes and Turquoise Lake. The watershed collaborative’s project will forward watershed health at California Gulch through forestry and fire mitigation. The collaborative will also reclaim mine sites, mitigating buried waste rock that leaches metals and acidity into waterways.
“All those things are great on their own but in that particular area, they work together to make an even stronger project,” says Jonathan Paklaian, director of the collaborative.
Old metal tube culverts that easily clog will be replaced with wider, more flood-resilient and natural-bottom culverts so fish can travel through them. In patches of contaminated ground where vegetation will not grow, soil amendments will try to convince plants to sprout.
The U.S. Forest Service, Trout Unlimited, and Lake County government have partnered for the five-year, $8 million project.
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Amount of Colorado’s precipitation that falls on the West Slope — most comes in the form of snow — yet about 90% of Colorado’s population lives east of the Continental Divide.
In the News: Going Underground
Water managers have been looking underground for water storage, recharging what can effectively become evaporation-proof reservoirs. They are exploring what’s called aquifer storage and recovery (ASR) where water is injected into aquifers during wet years and stored to use during dry years.
“It doesn’t replace reservoir storage, it doesn’t replace conservation, it’s another tool in addition to those,” says Rachel Pence, who heads ASR efforts for Denver Water.
Denver Water completed a project in 2022 investigating the productivity of two aquifers under the city and county for this technology. The next step is to drill wells, one in each aquifer, and test how they perform, monitoring for changes in water quality after storage, to better understand whether to pursue this approach on a larger scale. One of the beauties of this technology, Pence adds, is that these systems can be built incrementally, as needed or as capital investment funds are available without spiking water rates for customers. The utility may decide this isn’t a good solution, she says, but adds, “The chance of it not making sense at all is pretty low.”
Compacts
Turn on the tap, and the water flows. Little about that reliable delivery betrays the interconnected systems at play. As Jason Ullmann, Colorado’s State Engineer sees it, interstate and international agreements with 18 downriver states and Mexico govern when that water is available.
For Colorado, nine interstate compacts, two U.S. Supreme Court decrees, and two international treaties govern water use. These compacts are essentially treaties between states that Congress ratified. Colorado isn’t a direct party to the treaties with Mexico, but international agreements do drive decisions for Colorado’s compacts, Ullmann says. Each compact is specific to a river basin and each is different in how it apportions water. Most are decades old.
“Overall, they’ve held up fairly well,” Ullmann says. “Many of them were drafted with foresight and flexibility that allow them to stand the test of time.”
They also, usefully, created commissions with latitude to interpret and adjust without violating their basic provisions, and even recognize the basic reality that streamflow varies from year to year.
Take the Rio Grande Compact, which relies on gauges along the river’s headwaters to determine the amount of water that has to flow past the New Mexico state line — it’s a percentage of the total annual river flow high in the basin, rather than a set amount.
Still, climate change and ongoing drought are making a tight system tighter.
“The supply and demand imbalance that’s occurring in pretty much all of the West is resulting in challenges in all of our compacts, and that challenge is making sure we comply with them,” Ullmann says.
In the Rio Grande Basin, snowpack has been below average for almost every year of the past 25 years. Even when that basin does see average or above average snowpack, the river flows don’t reflect those numbers: This season, despite 105% of average snowpack in April, mainstem flows were just 75% of normal.
Constraints do appear: on the South Platte, the compact requires a summer flow of 120 cubic feet per second into Nebraska. Sometimes, even with curtailments, there isn’t enough water to raise flows to 120 cfs, but as long as Colorado curtails water rights appropriated before 1897 in the lower portion of the river, the state is considered in compliance with the compact.
Though challenging, Colorado hasn’t yet missed the mark. “We’ve always complied with the compacts in all the basins,” Ullmann says, “which is I guess a point of pride.”
The number of U.S. states who, along with Mexico, are allocated water from rivers that begin in Colorado through one of nine interstate compacts, two equitable apportionment decrees, and two international treaties.
In the News: Negotiating on the Colorado River
The “Law of the Colorado River” centers on a compact, set in 1922, and a series of newer, layered agreements, laws, and other actions that regulate water in the basin among the basin states and Mexico. The states are divided into an Upper Basin — Colorado, Wyoming, New Mexico and Utah — and Lower Basin — Arizona, Nevada and California.
The 1922 compact apportioned to both basins the right to consume 7.5 million acre-feet of water from the river and its tributaries annually. It contains a requirement that the Upper Basin can’t deplete flows at Lee Ferry, Arizona below 75 million acre-feet over any 10-year period. But total consumptive use allocated under the compact now exceeds the river’s average annual flow.
Currently, negotiators from the basin states, the U.S. Bureau of Reclamation, environmental interests and tribes are working to develop new operating guidelines for the river’s two major reservoirs, lakes Powell and Mead. Existing guidelines expire in 2026, and have allowed flexibility for operations under dry conditions. The goal is to adopt new guidelines that satisfy all interests before 2026.
Health & Environment
Colorado’s Public and Environmental Health Improvement Plan for 2024 — the Colorado Department of Public Health and Environment’s (CDPHE) priority issues to tackle — listed two emerging water-focused concerns: PFAS, and harmful algal blooms.
“New evidence suggests some of these contaminants may not be regulated at levels that protect health,” the plan states.
Per- and polyfluoroalkyl substances, known as PFAS, include several thousand man-made chemicals used in various consumer products and industrial applications since the 1940s. Only in the last 10 to 15 years have researchers begun to understand their human health risks. These “forever chemicals” persist in the environment and in human bodies for years after exposure, leading to health concerns with cardiovascular, immune and reproductive systems.
After water providers began detecting PFAS in drinking water, the state conducted widespread sampling to assess where PFAS are found and passed legislation to reduce the chemicals’ presence in consumer products and thus pathways into waterways. Firefighting foam containing PFAS, which can leach into groundwater, has also been banned. Earlier this year, the U.S. Environmental Protection Agency set new drinking water limits for PFAS, which will compel new actions from water utilities to reduce human exposure.
Colorado is also seeing harmful algal blooms that produce toxins and can sicken people or pets in some lakes and reservoirs. These blooms may look like thick pea soup or spilled blue-green paint.
Climate change could cause these algal blooms to occur more often, or at greater intensity, as temperatures and drought conditions increase. Blue-green algae thrives in warm, slow-moving water, according to the U.S. EPA, so as climate change increases water temperatures, the magnitude and duration of harmful algal blooms is expected to rise as well.
These blooms are caused by excessive amounts of nitrogen and phosphorous. At high levels, these nutrients can cause algae to grow faster than ecosystems can handle. Blooms produce elevated toxins and bacterial growth that can make people and animals sick if they contact or drink the water. Algal blooms also reduce oxygen levels in water, killing fish and aquatic life.
CDPHE and wastewater facilities in Colorado are implementing a long-term plan to reduce those nitrogen and phosphorous levels. The first phase of the plan incentivizes nutrient reductions and is expected to be completed by 2027. After 2027, CDPHE may develop numerical water quality limits. Point source pollution for these nutrients can include municipal and industrial wastewater treatment plants, concentrated animal feeding operations, and storm sewer systems, but runoff that carries fertilizer from agricultural fields and residential lawns can also cause nitrogen and phosphorous levels to spike.
Colorado public health officials have sought to reduce the chance of overloading water systems with nutrients by establishing treatment requirements for stormwater and for wastewater dischargers based on available technology and with exceptions for disadvantaged communities. CDPHE also encourages voluntary controls of nonpoint sources, according to Colorado’s Nutrient Management Plan.
In thinking broadly about ecosystem health, stakeholders have developed a few tools to assess risks, prioritize, and take action to address them. Stream management plans use science and assessments to analyze holistic river health and recreation. Integrated water management plans (IWMPs) include more stakeholders and focus on a wider array of needs. By focusing more on water users and values, IWMPs often look at solutions that meet community needs in addition to river needs. Watershed plans work more broadly than IWMPs to focus on watershed health and mitigating risk to water users, often from fires or floods.
In the News: Colorado Leads in Wetland Protection
Colorado established nation-leading protections for wetlands and intermittent streams after a 2023 U.S. Supreme Court ruling found that the federal Clean Water Act did not apply to those waterbodies.
Most of Colorado’s stream miles are intermittent or ephemeral, according to the Colorado Department of Public Health and Environment’s (CDPHE) Water Quality Control Division, but the court ruling left no agency with the authority to issue permits or enforce violations when, say, a road construction project harmed a wetland.
Dredge, fill and excavation work have altered or eliminated about half of Colorado’s wetlands since statehood, according to the Colorado Wetland Information Center.
In May, state lawmakers approved HB 24-1379, to firm up a system of state-issued permits for dredge and fill activities through CDPHE and formally protect wetlands and ephemeral streams.
The number of stream management plans and integrated water management plans that have been completed or are in progress across Colorado. These plans assess and strategize how to improve or maintain healthy river ecosystems, recreation and other water needs.
In the News: Streamlining Restoration Together
In 2023, the Colorado Legislature passed a law that declared functioning natural streams “beneficial to all Coloradans” and supporting stream restoration projects around the state. But the law had to be translated to practical, achievable changes — and fit within a variable climate and an over-appropriated system.
To close the gap between ideas and actions, Abby Burk, senior manager of the Western Rivers Program for Audubon Rockies, has helped facilitate workshops that have reached as many as 1,100 people around the state over the past year. Attendees have included staff from nonprofits, local and state agencies, watershed groups, funders, as well as practitioners and academics.
“Everyone can agree — did agree — that we want healthy, functioning streams, but how we do that was the issue,” Burk says.
When this works, it can lead to wildfire resilience, drought resilience, flood safety, water quality, recreation, and immense biodiversity benefits. But each stream faces a unique set of stressors, so while the end goals might be similar, every project looks different. And all of it has to be achieved within the constraints of meeting existing water users’ demands.
The law spelled out six minor stream restoration activities. The criteria “really does help minimize rifts with downstream water users,” Burk says, “but the key is that folks need to know how to operate within the law.”
Working with a river restoration engineer and a land and water attorney these trainings have talked people through the law and best practices. In June, trainers hosted a workshop that included a day at project sites near Carbondale. At least 100 attendees joined in-person, and dozens more tuned in virtually. The aim was to learn, Burk says, but it was also to connect people interested in working on these projects.