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Section 1 Introduction Significant water conservation has already occurred in many areas. 8. Environmental and recreational uses of water are expected to increase with population growth. These uses help support Colorado's tourism industry, provide recreational and environmental benefits for our citizens, and are an important industry in many parts of the state. Without a mechanism to fund environmental and recreational enhancement beyond the project mitigation measures required by law, conflicts among M&I, agricultural, recreational, and environmental users could intensify. 9. The ability of smaller, rural water providers and agricultural water users to adequately address their existing and future water needs is significantly affected by their financial capabilities. 10. While SWSI evaluated water needs and solutions through 2030, very few M&I water providers have identified supplies beyond 2030. Beyond 2030, growing demands may require more aggressive solutions. These Findings and the Recommendations found in Section 11.3 of the SWSI Report were drawn from all aspects of the SWSI process. However, they should not be viewed as consensus products of the SWSI Basin Roundtables. 1.4 Major Findings in the Dolores/San Juan/San Miguel Basin Below is an overview of the individual issues in the Dolores/San Juan/San Miguel Basin identified in the SWSI Report. These findings are provided here to assist the reader in linking issues in the Dolores/San Juan/San Miguel Basin to SWSI implementation and to the goals set forth by the Interbasin Compact Process. . This multiple basin area of the state is extremely diverse with changing demographics - The Pagosa Springs-Bayfield-Durango corridor is rapidly growing, has areas of localized water shortages, and is transitioning from mining/agricultural to tourism, recreation, and a retirement/second home area. S:\1177\Basin Reports\DSJSM\S1_DSJSM.doc - The Cortez area remains strongly agricultural but is also seeing rapid growth with retirees moving to the area. - The San Miguel area is a mix of recreation and tourism along with a strong desire to maintain agriculture. . Overall water supply is available but getting sufficient infrastructure and water distribution will be a key challenge. . The Colorado River Compact places pressure on uses of the San Juan River because New Mexico's primary source of the upper Colorado River Basin supplies is the San Juan River. 1.5 SWSI Phase 2 The SWSI Report was completed in 2004 and established a path forward for SWSI based on its findings. Phase 2 is expected to conclude in mid-2006; however, full implementation of SWSI elements will take place over a period of years and decades. In tandem, the Interbasin Compact Process further establishes the framework for long-term water supply planning in Colorado on an interbasin basis. Helping ensure Colorado's water future is a complex and difficult challenge. Addressing our water future means that we must ensure the social, economic, and cultural health and integrity of all of our river basins. Goals should be met by developing sound implementable objectives that can be met regularly over a longer term if SWSI's success is to be capitalized on. We now know, based on the SWSI Basin Roundtable information, Colorado can potentially meet 80 percent of its M&I water needs by 2030; however, some water suppliers may need help building infrastructure, mitigating and permitting projects, enhancing and improving the environment, and conserving water. We also now know that the state can reassure the General Assembly and other state decisionmakers to an extent never before possible that we are not facing an immediate water crisis, but long-term challenges. There are certainly some tough decisions to be made and parts of the state need to take action sooner than others, but realistically, none of these tough decisions or actions can be made overnight or in an atmosphere of crisis. CDIVI 1-3