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OQ31u9 The owner or owners of any irrigation ditch or canal shall carefully maintain the embankments thereof so as to prevent waste therefrom, and shall return the unused water from such ditch or canal with as little waste thereof as possible to the stream from which such water was taken or to the Missouri River. II In the case of Osterman v. Central Nebraska Public Power & Irrigation District,12 the Nebraska Supreme Court interpreted these statutes as effectively barring all transbasin diversions. A subsequent court deci- sion overruled Osterman," and in 1981 the Nebraska legislature passed new legislation permitting interbasin transfers that pass a pub- lic interest review.'4 3. Arizona Under Arizona law, out-of-watershed transfers are severely re- stricted because irrigation districts, agricultural improvement districts, or water users associations located within, and using water from, the drainage are given a veto over all water transfers.15 The provision states: No right to the use of water on or from any watershed or drainage area which supplies or contributes water for the irrigation of lands within an irrigation district, agricultural improvement dis- trict or water users association shall be severed or transferred with- out the consent of the governing body of such irrigation district, agricultural improvement district or water users association. 16 Although directed at transfers generally and not only out-of-water- shed diversions, the restrictive effect is apparent. There are no re- ported Arizona cases involving this law. 4. Montana In the 1985 legislative session, Montana enacted some major changes in its water laws. Of relevance here is a provision which al- lows only the Montana Department of Natural Resources and Conser- vation to engage in out-of-basin transfers. 17 Presumably, those desiring such out-of-basin transfers must first convince the state to 11. 189S Neb. Laws ch. 69, 9 46-26S. 12. 131 Neb. 3S6, 268 N.W. 334 (1936). 13. Little Blue Natural Resource Dist. v. Lower Platle N. Natural Resources Dis!.. 206 Neb. 535. 294 N.W.2d S98 (1980). 14. 1981 Neb. Laws ch. 252.96 (codified as NEB. REV. ST.n. ~ 46-289 (1984)). For discussion of Ihis statute see infra text accompanying notes 35.)7. ]5. ARIZ. REV. STAT. ANN. 945-172(5) (Supp. 1985). 16. [d. 17. MONT. CODE ANN. 9 85-2-J01(2)(a)(i) (1985). The basins are specifically named in the law and include all Ihe major Montana river systems.