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. . Conclusions and Recommendations The principal economy of the project area is based upon agri- cultural and livestock production. Much of the project area is now devoted to dryfarming with pinto beans and wheat as the main crops. The soils in the area are excellent and have a high production capability. Partial crop failures are frequent due to the lack of adequate precipi- tation. Considerable versatility in the type of crops and a more certain production will come about as a result of irrigation. That portion of the project area lying around Cortez now receives considerable irrigation water through the facilities of the Montezuma Valley Irrigation Company. However, shortages under this system are frequent and supplemental water is needed. Tourism also provides an important economic base for the area, largely as the result of the nearby Mesa Verde National Park. The pro- posed McPhee Reservoir would add greatly to the tourist base since the reservoir would lie in a beautiful setting and have a large permanent pool for fishery and recreational purposes. The communities of Cortez, Cahone, Pleasant View and Dove Creek will all need additional municipal water supplies in the near future. During past drouth years, the town of Dove Creek has been forced to haul water supplies by truck. The Indian community of Towaoc. south of Cortez, is in desperate need of additional water supplies for both municipal and agricultural purposes. The entire project area has been classified as a persistent depressed area. The project is not without its problems. A local squabble over presently unused water rights has delayed negotiations for a repayment contract. However, it is anticipated that this problem can be solved and that the definite plan report will be completed and the repayment contract executed by June of 1974. Because of the critical problems of this area, not the least of which is the Indian water rights question, the following course of action is recommended for the Dolores project: 1. That funds in the amount of $450,000 be sought for F.Y. 1974 to continue the advance planning on the project. 2. That funds in the amount of $225,000 be sought for the project for F.Y. 1975 to complete the advance planning. 3. That funds in construction on the project tract is executed some time the amount of $3,100,000 be sought to initiate in F.Y. 1976, providing that a repayment con- during the calendar year 1974. FLS:mm -6-