Colorado River drought intensifies water battle between Western farms, cities and industry

A decade‑long drought, record‑low winter snowpack and the hottest March on record have slashed flows in the Colorado River system, which supplies water to about 40 million people across seven U.S. western states and Mexico and irrigates millions of acres of farmland.

In Arizona, farmers such as Nancy Caywood of Casa Grande are paying steep water‑board fees while their reservoirs sit at just 1 % capacity, and rancher Jace Miller has had to sell a fifth of his herd as stock ponds dry up. Farmers contend with growing demand from towns, data‑center and solar‑project operators, and semiconductor plants, while city officials in places like Scottsdale consider buying groundwater rights from farmers to meet municipal needs.

Federal officials are weighing a proposal from the Lower Basin states—Arizona, California and Nevada—to cut Colorado River allocations by roughly 21 % per year through 2028 in order to keep critical reservoirs from failing. The plan could heighten an ongoing dispute with the Upper Basin states (Colorado, New Mexico, Utah and Wyoming) over how to divide the river’s shrinking flow, potentially leading to litigation.