The US government released a long-awaited plan on Friday, July 31, 2026, proposing significant cuts to water usage from the Colorado River by the Lower Basin states of Arizona, California, and Nevada. The federal proposal, issued by the US Bureau of Reclamation, aims to reduce water use by up to 3 million acre-feet annually through 2036 — roughly the amount Arizona and Nevada currently receive and enough to serve over 25 million people.

The plan spares Colorado, Utah, New Mexico, and Wyoming from mandatory cuts for the time being but is considered a temporary solution as the states continue to negotiate a long-term management strategy for the river. This comes amid a historic water shortage, with reservoir levels not seen since 1957.

US Interior Secretary Doug Burgum emphasized the department's duty to maintain a reliable and resilient Colorado River system for the millions depending on it. “This framework provides the flexibility to respond to changing hydrologic conditions while preserving the opportunity for the Basin States to continue working toward durable, consensus-based solutions,” he said.

The Arizona Department of Water Resources warned that implementing the proposed cuts would devastate water users and the state's economy. However, Rhett Larson, a water law professor at Arizona State University, noted that cities in metro Phoenix, which do not rely entirely on the Colorado River, are likely to maintain water service, though some areas may see increased water rates. For example, the city of Gilbert has already raised residential water rates by 50% since April 2025.

Cities across the Colorado River basin are increasingly seeking alternative water sources such as groundwater, wastewater treatment, and desalination, all of which are more costly than Colorado River deliveries.

The sprawling Colorado River basin stretches 1,450 miles from the Rocky Mountains into Mexico, supporting an estimated $1.4 trillion in economic activity and providing critical habitat for more than 150 threatened or endangered species.

The federal government is expected to release a detailed record of decision soon, likely aligning with earlier proposals from the Lower Basin states to reduce water use by 3.2 million acre-feet over 2027 and 2028.

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