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<br />2-8 <br /> <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />(}\)'13 <br /> <br />other water originating further upstream users may also be adversely affected due to decreased <br />return flows after a transfer. <br /> <br />To supply high quality water to their users, the metropolitan areas prefer the waters from high <br />mountain streams and reservoirs. When this source of water is limited, denied or of high cost, <br />agricultural water may be purchased. Water is also exchanged from the lower Arkansas River <br />upstream to headwaters areas. The water quality of the lower Arkansas River can deteriorate <br />because this high quality water is used before mixing' with the local return flows. An off-setting <br />factor in the water quality issue is the reduction of irrigation practice, since irrigation also degrades <br />water quality (Miles 1977). Water quality can also affect water quantity. For example, clear water <br />scours ditches and causes increased seepage losses, while silty water seals ditches and allows <br />greater water delivery to fields. <br /> <br />Water users and others, whether agricultural, municipal, industrial or recreational, desire to protect <br />the quantity, quality and timing of their water supplies. Effects on these users are increasingly <br />being recognized by the courts. <br /> <br />2. Economic, financial and social; commerce, opportunity and quality of life <br /> <br />Water users are impacted by water transfers, but so are members of the local and regional <br />communities. For example, the dollar in the farmer's pocket pays taxes and is spent with the local <br />merchant, and the merchant in turn pays taxes. The impacts of a dollar spent can vary <br />significantly: a dollar deposited with out of state bank works differently than the dollar paid to the <br />local farm laborer. Transfer of water brings a one-time flow of cash to sellers; this mayor may not <br />be spent in the study area. Some (perhaps most) may be used to repay lenders, including some <br />local bank debts, which may increase local capital supply. However, there may be little need for <br />additional capital in the locality so it will flow elsewhere. <br /> <br />Transfer of water results in loss of acreage in irrigated agriculture: <br /> <br />a. If water is transferred outside the study area, loss of agricultural production is <br />greatest. <br />b. If water is reallocated within the stuqy area to agriculture, loss of production is <br />lessened--and possibly no loss occurs. . <br />c. If water is reallocated to other us~s within study area (e.g., M&I, wildlife, <br />recreation), loss of agricultural production may be offset by economic gains in other <br />sectors. <br />d. If water transfer requires construction of diversion works within the study area, <br />rather than upstream, or requires revegetation of dried up land, there will be some <br />temporary economic benefit and job creation which will offset some of the <br />economic loss. <br />e. Loss of irrigated acreage will reduce ,property values in the study area. Lower <br />property values will adversely impact tax revenues of all local governments, school <br />and special districts. Colorado consti~ution amendment 1 (1992) has added new <br />restrictions on tax revenues. <br />