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J '. to meet the needs of a project "ith a diversion point near Fort Peek, Montana--the old Crosby-Kohall Unit and associated "orks. With the adoption of the Garrison Diversion Unit plan, a special committee reviewed the conservancy district law in 1954, and the legislature passed, in its 1955 session, the Garrison Diversion Conservancy District law with which We are dealing today. The District "~s activated in July 1955 with 22 counties included, and has since been enlarged to include 25 counties. These are the counties which stand to benefit directly from the Unit as presented in the 1957 Bureau feasibility report. Three of the principal reasons for enacting the legislation were: 1. To provide ill the North Dakota law for a legal entity that could contract for a portion of costs of construction and opera- tion of works in such a manner as to assure needed assistance to \~ter- user groups. 2. To provide a means of taxing those living off the project who would or could profit from the development; thus strengthening financial feasibility of Lhe proposal. 3. To provide an official body representing all types of ......&._..... "__'~_ -C\__~ ___~_...._.___ -'._ .,","_ :__-'- __,__ ". _...' ..-......... ....~.......... ........... .................uv....~~....'- ...~... 1:'.1. v....",;......... .t:'..I..UU.l...L.L.,l..l.5 u.uu. u!-'<:;:.Lu......L\...Il.... Stated another way, the Conservancy District provides an organization through which the people in the affected counties can assist in the planning work for the Unit; can demonstrate their interest in the job by paying a s~all (one-tenth mill) tax levy while the work is getting started; can, through a larger levy, contract with the United States to repay part of the construction cost of the Unit; and can assist the farmer by helping to pay operation nnd maintenance costs while he is converting to irrigation. The essence of the Conservancy District is its capacity to levy an ad valorem tax on property in the District. In this particular District the limit is one mill. This tax is a recognition of so~ething We all know--that the beneficial effect of a water resource developwent, especially an irrigation development, extends far beyond the boundaries of the farms served. The grocer, ,the doctor, the lumber dealer benefit from the increased farm production and the population growth that goes with it. The food processor, the railroad, the ~achinery manufacturer-- these all do more business because of the irrigation development. We . have ample proof, statistically, of the far-reaching effect of irriga- tion; but even without statistics we can observe the effect when we go into an irrigated oasis from an area of non-irrigation farming. These benefits are real, tangible benefits. I dislike hearing them referred to as secondary or indirect. They make a noise in the cash register. E-2 ~ T