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002522 I' Bridge Canyon Dams be sold at 6 mills per kilowatt-hour. Hoover and Parker-Davis Dams were, of course, built heretofore by the Federal Government and constitute an existing asset for the entire region. At the expiration of the 50-year payout period, it seems reasonable to anticipate that these power dams should be fully integrated finan- cially into the Lower Colorado River Basin plan and provide necessary power benefits to assist the water projects. It would seem reasonable to assume that the power rates fixed should provide whatever benefits are needed to make future projects feasible. As a point of departure, to serve as the basis for discussion in this report, we have assumed that power will continue to be sold at 4.7 mills at Parker-Davis after payout and that Hoover power would be sold after payout at 4 mills. We recognize, however, that these figures are arbitrary and could be flexibly adjusted to meet future financing contingencies. If the economic guidelines outlined in this report were followed, a highly favorable benefit-to-cost ratio would be assured, and the proposed Pacific Southwest Development Fund would produce the revenues needed to amortize whatever water projects were authorized by the Congress. To assure congressional control over future developments to be financed from the Fund, we propose that the Fund serve as a source of funds from which Congress might also make appropriations, and that each future project require specific statutory authorization to par- ticipate in the Fund. The Pacific Southwest region presents extensive opportunities for fish an~ wildlife and recreationaI development. The potential of regional power interties promises significant benefits. Water quality contrcI and watershed management are important regional resource objectives. While programs to meet these needs and to take advantage of these opportunities are important parts of the Pacific Southwest Water Plan, their more exact definition and scope require further study and wiIl be considered in light of the review comments received on this report. The programs of the various agencies of the Interior Department a!'e presented in the appendix to this report. Tne Pacific Southwest is now at the crisis point in meeting its growing demands for water. A renewal of the old controversy over water resources will staII the region beyond the crisis point. The hopes [or the future economic growth and development of this great region are wrapped up in the selected plan or one of its alternatives presented in this report. To implement this plan requires a "can do" philosophy, a confidence in America and in its future. It requires new concepts of land and water management. It requires a new spirit of cooperation and coordination among the diverse Federal, State, and Ioeal interests in this growing region. It requires water states- manship of the highest order. Indeed, either we will prosper together, or we shall shriveI separately. 4