Water allocation policies offer municipal water providers a framework to manage water resources in alignment with long-term community goals and development priorities. By setting guidelines for serving new development, these policies connect water availability to community priorities such as economic growth, affordable housing, and desired industries. They are used by communities of all sizes to responsibly manage water resources as growth occurs.
Water allocation policies have cropped up in the Interior West over the past decade as fast-growing cities have run up against the limits of their water supply in an increasingly arid region. This report provides case study examples of how these policies were designed and implemented in the town of Frederick, Colorado, the town of Buena Vista, Colorado, and the city of Chandler, Arizona. Each policy was structured to improve future water supply security and to achieve unique community needs and goals such as discouraging large industrial water developments, reducing water speculation, and encouraging more attainable housing. Community representatives shared that one of the most unexpected pieces of the water allocation policy development process was the administrative load that came with policy implementation and the need to coordinate across city departments. They emphasized that community input in the process helped them adapt their policies to best meet their needs.
Based on the case study findings and interviews with other communities in the Interior West that do not currently have a water allocation policy, these policies are likely best suited for communities that have limited water resources that would be overallocated at full build-out, have some available city-owned water rights and don’t just require developers to bring their own water rights, and are still experiencing growth and development pressures. Communities without water allocation policies may employ other related policy tools to ensure their growth is aligned with their water resource availability and infrastructure capacity. Water allocation and other related policies can be adapted to unique local needs and help communities in the West continue to thrive as water resources become more scarce, costly, and unpredictable due to climate change and intensifying drought conditions.
