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forests were dedicated to timber cutting as the first use and a <br />policy of below-cost sales was adopted to assist small timber- <br />dependent towns. The great rivers of the Pacific Northwest were <br />developed to support hydropower. <br />Appropriation of western water was the furthest extension of <br />our national and regional determination to dedicate the West's <br />resources to extractive use and to grant hard, vested rights to <br />such uses. Streams were literally zoned for consumptive <br />appropriation. There were no limits on dam building and flooding <br />of canyons. At baseline, individual developers were left to make <br />their own decisions on public water, even if it meant that a <br />stream might go dry or that a large urban area might strip a <br />rural community of its lifeblood. Western water, Colorado water, <br />was there for the taking. <br />This era is often painted as the heyday of private enter- <br />prise and, to be sure, it was marked by ample ingenuity and hard <br />work. Yet water development in Colorado and other western states <br />was energized by massive governmental support that allowed con- <br />sumptive users to obtain radically underpriced water. This <br />occurred in three fundamental ways. First, the state and federal <br />governments have never required any payment at all for the use of <br />public water. This is in direct contrast to normal principles of <br />public resource development and is a good example of why I say <br />that water policy is the most extreme form of western resource <br />development. When a timber company wants to use government <br />timber, it must pay a stumpage fee. A rancher must pay a grazing <br />-3-