Category Archives: Water Marketing

Hydrowonk’s Strategy for Addressing Arizona’s Colorado River Water Challenges: Voluntary Transfers with Owners of Arizona’s Senior Colorado River Water Rights

Arizona’s Colorado River Water Challenge

Arizona is facing a critical water supply challenge. The over-appropriation of the Colorado River requires new water conservation to meet the water demands of economic development in Arizona. With groundwater use reaching its limit in Central Arizona, Arizona’s future economic development faces unprecedented challenges in securing adequate surface water supplies. A case example of these challenges are playing in Buckeye, where, as explained in a recent article in Axios, limited water supplies and resulting challenges have halted development and left some houses stranded (approved but unbuilt).

Meeting surface water supply challenges require institutional reform today.

Continue reading →

Hydrowonk’s Fairness Opinion on the Current Price of Lower Colorado River Water

The Colorado River remains in disarray as parties search for ways to meet the Bureau of Reclamation’s announced goal of reducing use of Colorado River water by 2 million acre-feet to 4 million acre-feet annually perhaps through the year 2026 (https://hydrowonk.com/blog/2022/08/19/the-colorado-river-in-disarray/).  Hydrowonk hears rumors that parties are struggling in negotiations to secure voluntary conservation to meet the Bureau’s objectives, as well as provide conserved water to offset curtailments junior priorities incur under the 2019 Drought Contingency Plan.

Continue reading →

The Colorado River in Disarray

The inevitable is upon us.  Channeling Hydrowonk’s favorite Chicagoan theologian, “the curtailments have come home to roost.”

Many are not surprised.  The early 20th century was a period of historically high natural flows on the Colorado River when the 1922 Colorado River Compact was negotiated.  The 1944 Treaty with the Republic of Mexico was, at least partly, a national security exercise during World War II against Nazi incursion south of our border.  Were interested parties inside and outside state and federal governments engaged in long-term comprehensive risk assessment over the past seventy years?  Based on Hydrowonk’s four decades plus experience, nope (with a few exceptions).  Neglect is always a prelude to catastrophe.

Continue reading →

Appellate Court Wheeling Decision Puts More Pressure on Northern California Water Supplies

Last June, the Court of Appeal of the First Appellate District issued an opinion addressing the long-standing dispute between the Metropolitan Water District of Southern California and the San Diego County Water Authority regarding lawful wheeling rates for water conveyed to San Diego through Metropolitan’s Colorado River Aqueduct and local distribution system. Reversing a superior court decision, the Appellate Court held that Metropolitan’s inclusion of State Water Project costs in its calculation of wheeling rates was lawful. Putting aside legal debate, Hydrowonk focuses on the economic consequences of the decision.

Continue reading →