Proposed Federal Water Grabs and Their Potential Impacts on States, Water and Power Users, and Landowners

Each state has its own system of water law that governs public and private water rights within its borders. Most western states have adopted the prior appropriation doctrine (prior appropriation), or "first in time, first in right," or have, to some degree, integrated this approach into their systems of water law. Under prior appropriation, water rights are obtained by diverting water for "beneficial use," which can include such uses as domestic and municipal purposes, irrigation, stock-watering, manufacturing, mining, hydropower, aquaculture, recreation, fish and wildlife, among others, depending on state law. The amount of the water right is the amount of water put to beneficial use. Eastern states normally use riparian systems of law, under which rights to use water are tied to land adjacent to waterways. Obama Administration proposals made under the guise of clarifying the federal regulatory roles in some water uses have only provoked more uncertainty. The proposed "Waters of the U.S." regulation and the "Groundwater Directive" could have significant negative impacts on water and power ratepayers, states, and localities. In some cases, the proposals could negatively impact local conservation and groundwater recharge efforts aimed at actually alleviating drought.