Environmental & Energy
Jun. 15, 2026
Paper water markets and the future of the Colorado River
As worsening drought strains the Colorado River, Western states are exploring "paper" water trades--using desalination, recycling, and accounting mechanisms to swap water across state lines--even though existing laws may not clearly allow it.
In early May, Arizona, California and Nevada proposed a plan to stabilize the drought-stricken Colorado River through 2028. In mid-May, the federal government proposed a longer (10-year) plan for the Colorado River that could cut up to 40% of current supplies to those three states.
Meanwhile, in an effort to find creative solutions to pressures on the Colorado River, in February, the board of San Diego County Water Authority (Authority) approved a draft...
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