Upper Basin States Block Record Tribal Water Settlement
Colorado, New Mexico, Utah, and Wyoming are blocking a historic water rights settlement for the Navajo Nation and other tribes over concerns about water leasing precedents.
The Navajo Nation, Hopi Tribe, and San Juan Southern Paiute Tribe have negotiated the largest tribal water rights settlement in U.S. history to secure Colorado River water and $5 billion in federal infrastructure funding for northern Arizona. The deal includes the creation of a permanent homeland for the San Juan Southern Paiute. However, the Northeastern Arizona Indian Water Rights Settlement Act is currently blocked by the Upper Basin states of Colorado, New Mexico, Utah, and Wyoming.
These states oppose the legislation primarily because it allows the Navajo and Hopi to lease water rights to cities outside their reservations. Opponents argue that leasing water to downstream cities like Phoenix or Los Angeles sets a dangerous precedent for open-market water sales and threatens their own water security. While the Lower Basin states of Arizona, California, and Nevada support the measure, the U.S. Congress and White House have declined to approve the settlement until all basin states reach an agreement.
Tribal leaders have offered concessions regarding leasing volumes and durations to resolve the impasse. Despite these efforts, state governments continue to raise unresolved concerns regarding river governance laws and whether leased water counts toward legal delivery requirements.