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<br />water supplies is endemic. Second, the water rights systems of these states <br />are based in whole or in part on appropriation anj actual use, anj are therefore <br />IWre seriously affected I::!i the different leyal basis upon which federal reserved <br />rights are created. 'lbird, a far greater percentage of lanj in these states <br />is federal, which leads to the likelihood of greater federal water rights <br />claims. 'lherefore, given the magnitude of the task set by the President, <br />anj the tight deadline under which we operated, we directed that the inventory <br />anj otner efforts concentrate on, and our re<xuoonaations are limited to, <br />these seventeen contiyuousWestern States. ']he IililosoIily of federal-state <br />~ration underlying oor re<xurendations should, hQiever, be applicable <br />to other states as well. <br />F. State and j,'ederal Perspectives on This Issue <br />'Ihe controversy surrounding state-federal relations aver water rights <br />has several sources. At the risk of oversiIaplifying, the states' perspec- <br />tive on this issue springs mainly fran the following considerations. States <br />have regarded the federal reserved right as an affront to what sure states <br />argue is state "ownership. of the water resources within the states' Ix>lID:Iaries, <br />and to state leyal bYStans established to administer and control the use <br />of that water. Because the reserved right remains viable even thouyh no <br />water is put to actual use, it can hamper developnent of the water resources <br />of the state. When water subject to a reserved right is put to actual <br />use, it could inlpair the expectations of holders of water riyhts perfected <br />under state law after the date of the federal reservation, without the federal <br />governllent being obligated to c:arpensate those holders. Finally, states <br /> <br />-20- <br />