With negotiations still at an impasse and deadlines approaching, decisions over the next year could shape Colorado’s economy and quality of life for generations.
DENVER — The Colorado River, the lifeblood of the West, is at the center of a crisis that could reshape Colorado’s economy.
In this week’s 9NEWS Business Buzz, Business Expert Ryan Frazier breaks down the stakes with Greg Walcher, former Executive Director of Colorado’s Department of Natural Resources and a lead negotiator for the state.
The 1922 Colorado River Compact, a century-old agreement, assumed the river carried 15 million acre-feet of water annually.
Today, flows average just 11–13 million, sometimes dipping below during extreme droughts. Colorado is legally required to deliver 7.5 million acre-feet to downstream states each year — whether the water exists or not.
Here’s what that potentially means for Colorado businesses and families:
- Agriculture on the line: Western Slope farms rely on river water for peaches, wine grapes, hay, and cattle. Cuts could reduce yields, push water-intensive farms into financial trouble, and raise regional food prices. Agriculture accounts for $47 billion of Colorado’s economy, and many rural jobs are at stake.
- Front Range growth under pressure: Cities including Denver and Colorado Springs depend on trans-basin water. Shortages could stall new housing, hike development costs, and tighten the real estate market, affecting affordability and investment.
- Rising utility costs: Hydropower from Hoover and Glen Canyon dams could drop, forcing utilities to buy pricier energy. Water treatment and delivery costs would climb, increasing bills for households and businesses alike.
- Federal oversight looming: Post-2026, if the seven Colorado River states fail to finalize a deal, Washington could step in. That would reduce Colorado’s control over allocations, creating uncertainty for developers, municipalities, and investors.
Walcher warns that the stakes are real and immediate.
“This year, the Bureau of Reclamation released 2.25 million acre-feet more from Lake Powell than nature put in — essentially draining the river’s savings account,” he said. “Without a fair agreement, Western Colorado agriculture takes the first hit, Front Range development slows, and consumer water and energy costs rise.”
With negotiations still at an impasse and deadlines approaching, the decisions over the next year could shape Colorado’s economy and quality of life for generations.
For more, watch the full episode above.