The U.S. federal government has agreed to pay the Metropolitan Water District of Southern California up to $65 million. This payment is to ensure some of its water from the Colorado River stays in Lake Mead this year. This effort aims to curb the reservoir’s decline and maintain hydropower at Hoover Dam.
The board of the Metropolitan Water District finalized the agreement with the U.S. Bureau of Reclamation. Metropolitan will receive $325 per acre-foot of Colorado River water retained in Lake Mead, reaching up to 200,000 acre-feet by 2026. Each acre-foot, which is approximately 326,000 gallons, is sufficient for about three Southern California households.
Funding for this initiative comes from the Lower Colorado River Basin System Conservation and Efficiency Program, supported by the 2022 Inflation Reduction Act. This arrangement reflects years of investment in areas such as conservation, recycling, and water storage.
Adán Ortega Jr., Chairman of the Metropolitan Board, emphasized that Southern California’s investments in water resources have bolstered the system’s resilience. He noted that these investments position the district to stabilize the Colorado River efficiently. Since 1990, about $1.7 billion has been invested in conservation initiatives, resulting in over 8.8 million acre-feet of water production.
Complementing the main agreement are deals with the Quechan Tribe and Bard Water District. These will allow the funding of up to 19,000 acre-feet of conserved agricultural water added to Lake Mead in 2027 and 2028.
Lake Mead, the largest reservoir in the U.S., faces challenges due to prolonged drought and reduced runoff in the Colorado River Basin. The Metropolitan Water District notes projected record-low water levels following a year of minimal snowpack.
The Colorado River is a crucial water source for seven U.S. states and Mexico, supplying water to 35 million to 40 million people. It supports municipal water needs, hydropower, and habitat conservation.
This agreement also aims to maintain power generation at Hoover Dam. Falling water levels could cut hydropower capacity at the dam by 70%, impacting electricity supply in the Southwest.
Shivaji Deshmukh, General Manager of Metropolitan, underscored the significance of the agreements as temporary measures. He noted that long-term solutions will require new commitments from the seven Colorado River Basin states following the expiration of current guidelines in 2026.
The Metropolitan Water District serves nearly 19 million residents across Los Angeles, Orange, Riverside, San Bernardino, San Diego, and Ventura counties.

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