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Transferring water from one basin to another has been, and will continue to be, a source of political controversy. As legal as it may be, nobody likes to see water diverted from their region to another region. There has been a clamor for "basin-of-Origin" legislation for many years. Some bills proposed have been honest attempts to address this problem ... others appear to be thinly disguised attempts to stop water diversions period. I think we all recognize by now that legislation designed to merely stop diversion will be unsuccessful because growth, even at modest levels, requires adequate water. What can be done is to provide protection and equity for those areas that have water available. Water providers understand very well that, in this day and age, a project will succeed only when there is a fair accommodation with in- basin interests. Protecting basins of origin is an important responsibility, which should be executed on a "case-by-case basis" ... between and among the parties at interest. This will allow for the fashioning of creative, flexible resolutions of the individual issues raised by that particular transfer. Protection of basin of origin does not lend itself to a prescriptive, cut and dried state-wide doctrine. As a component of our Northern Project, Thornton has been voluntarily providing payment in lieu of taxes to Northern Colorado entities for over five years. The City has also agreed to contribute financing for new projects with the Water Supply and Storaae Ditch Company. Thornton, of course, benefits from the company's new projects, but the point is that water providers can and do act responsibly without statutory prescriptions when these situations are handled in a positive, forward looking manner. OBSERVATION #3 -- Water conservation isn't iust low-flow toilets. Everyone is in agreement as to the importance of water conservation. The City and County of Denver should obviously be applauded for bringing its metering program on-line faster"than expected. While a great deal of attention has been given to metering, building codes, retrofit devices, and xeriscaping, I believe we also need to focus on "supply-side" conservation. By "supply-side" conservation, I'm referring to water reuse and raw water exchanges. These mechanisms have the potential of making major supplies of water available to the Front Range and, therefore, should be aggressively pursued. The ways in which we can get the most out of municipal water supplies, giving special attention to cooperative efforts between municipalities and the agricultural sector -- such as those John Akolt will probably describe this afternoon -- must be carefully explored and, where feasible, promptly implemented. Again, Lee Rozaklis's draft report catalogues some of these opportunities and identifies issues to be further addressed. 14 j