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Colorado River Water Market Supports Fish and Farms

Colorado River Water Market Supports Fish and Farms


By Jamie Martin

A new market-based water system in the Colorado River basin could improve water use, benefit agriculture, and restore critical fish habitats.

The study, published in Nature Sustainability, offers a model that addresses both water shortages and environmental protection during drought.

The Colorado River serves 40 million people, 5 million acres of farmland, 30 tribal nations, and parts of Mexico. Due to historic overuse and climate-driven drought, there is now less water than what was originally promised in the 1920s river compact.

“The Colorado River is a marvel in terms of the scale of its impact on ecosystems, agriculture, economies, and people,” said Stanford hydrologist Steven Gorelick. “Given the overallocation of the river water, we explored how the needs of people and the environment can both be served.”

Researchers developed a model for voluntary water markets where farmers and cities lease senior water rights to government or environmental groups. These protected transactions ensure water reaches vital fish habitats rather than being re-used elsewhere.

Without these efforts, fish populations are at risk, especially during peak irrigation months. Of 49 native fish species, 44 are endangered or extinct.

Modeling showed that protected water markets could restore 380 miles of river habitat and cost less than unprotected systems. Spending around $29 million could achieve moderate cuts in water use, while aggressive strategies may cost $120 million.

Lead author Philip Womble emphasized the benefits: “Spending a little bit more money, especially in headwaters, could have outsized ecological impact.”

This model offers a path forward by aligning agriculture, conservation, and policy—ensuring water security for farms and ecosystems under changing climate conditions.

Photo Credit: istock-dorin-s


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