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Extensive Lead Time Needed to Produce New Supplies: Also, it takes a long time to deliver new or transferred water supplies to meet our future needs. The time and expense of engineering studies, environmental studies, and public participation make the decision process so complicated that the development or transfer of new water supplies must be initiated long before the need for them actually arises. Without a crystal ball or a better way of making these decisions, we may be forced to prepare for major shortages and to entrust our future to luck and litigation. Impact on Future Development in Other Parts of the State: Finally, extensive transfers of water from any given area may preclude future growth in that area. We have seen this happen in parts of the Fraser River basin. The recent agreement between Denver, the Colorado River Water Conservation District and others appears to have solved that particular problem, and I applaud such efforts, but we know that this risk is a real one. NEW DIRECTIONS AND ALTERNATIVES I know we can find solutions to these issues. There are many options available to us as we seek effective and cooperative ways to assure adequate water supplies, and protect our agricultural communities, our environment, and our economy. As we look at some alternative strategies for resolving these concerns, I don't think we are talking about a fundamental change in our water rights system -- and I understand that there may be some nervousness about that in this room. We don't need to introduce fundamental change into our water rights system, but we should not be afraid to explore a more productive and less divisive approach to problem solving. And as we examine these approaches, perhaps it is time for the State to play an enhanced role in these matters. I say this with some reluctance, because clearly, the people of Colorado are demanding smaller, less expensive government. But it is equally clear that the divisiveness, lack of cooperative planning and endless litigation we have experienced carries its own price tag. We have many options to consider: A Reaional Water Coordinatina Oraanization: We may want the State to organize the many independent water providers along the Front Range into an association which could soften the institutional boundaries that currently isolate and divide our Front Range communities. By doing so, we may be able to reduce or eliminate existing water supply shortages, reduce competition and increase support for new sources of supply, and develop a cohesive regional plan which assures adequate water supplies throughout the Front Range. State Incentives: We may also want to use state resources such as money from our Construction Fund or Water and Power Authority as incentives to promote more coordinated and comprehensive planning and management of our water resources. This might be accomplished by 6