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I I I I I I I I I I I I I I I I I I I 1985 water policy speech by then-governor Richard Lamm of Colorado, the wisdom of perpetuating historic water uses at the expense of instream values was questioned. To emphasize this point, the governor stated that alfalfa, which consumes 27 percent of Colorado's water, injected only $156 million/year into the state's economy, while recreation and tourism accounted for more than $4 billion in annual statewide benefit. Similar disparities in value occur in other regions of the West where fishing, commercial rafting, boating, and scenic waterways attract large numbers of people. Millions of dollars in revenue are lost when these activities are undermined by diminished streamflows, losses that debilitate local economies and disrupt businesses statewide. The loss of recreational opportunities also has a non-economic detrimental effect on those who find pleasure and a release of urban tensions in water-based activities. Other Economic Benefits Sectors of the western economy unrelated to recreation and tourism are also enhanced by free-flowing waters. In many areas of the West, revenues from water-borne commerce and hydropower are important to the economy. Similarly, commercial fishing is highly dependent on instream flows. And an environment enhanced by streams and lakes helps to attract new businesses looking to locate in areas where their employees can enjoy a high quality of life. Instream flows save cities and industries millions of dollars in sewage and effluent treatment costs. Wastewater typically must be treated to ensure that the receiving waters do not exceed contaminant standards. A loss of instream flows to dilute the effluent can result in more stringent treatment requirements on the city or industry prior to discharging its effluent. Role in the Environment The benefits of in-place water to the natural environment are readily apparent in the West. Streamflows are needed to maintain endangered fish species and the aquatic environment as a whole. Free-flowing waters are also crucial to terrestrial species. Natural rivers, streams, and lakes create ribbons of habitat throughout the arid West that are essential to the life cycles of various species as well as to the general ecosystem. In- place water is essential to the existence of wetlands. The benefits generated by water in these areas translate into additional economic value where hunting, bird watching, and other land-based activities add to local revenues. A less obvious, but very important function played in the natural environment by instream flows involves maintaining the physical capacity of streambeds and river channels to carry runoff. Channel capacities often depend on instream flows to transport 1-3