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Federal Colorado River Rules Take Effect as Arizona Faces Large Jan. 1 Cut

The Interior’s interim plan shifts releases and places pressure on a three‑state deal that must be finalized to avoid Arizona absorbing a 760,000 acre‑foot reduction next year.

Overview

  • Federal operating rules went into effect on Oct. 1 and the Bureau of Reclamation ordered releases from Flaming Gorge while holding water at Lake Powell to protect hydropower, which reduces flows to Lake Mead.
  • Arizona’s Colorado River deliveries remain unchanged through the end of 2026 but federal guidance schedules a 760,000 acre‑foot reduction for the state beginning Jan. 1, 2027, equal to about 27% of its usual allocation.
  • Arizona, California and Nevada are negotiating a Lower Basin agreement to share and smooth required cutbacks and have until the new year to finalize terms to alter how the Jan. 1 reduction is applied.
  • Nevada’s lawsuit challenging the Interior’s plan has created legal uncertainty that has slowed talks and could affect whether the three‑state deal or the federal interim rules determine cuts.
  • Arizona water managers are rolling out short‑term measures, including a one‑year firming policy and voluntary programs that let cities conserve in exchange for access to the Arizona Water Banking Authority, while state boards or the Legislature may need to approve final agreements and rate changes for customers.