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<br />Report of The Colorado State Auditor <br /> <br />15 <br /> <br />. <br /> <br />Grants promoting efficient management and operation of water systems. <br /> <br />. <br /> <br />Studies related to particular issues, such as the effects of transferring <br />water from one river basin to another. <br /> <br />These programs provide the Board with greater flexibility in using construction <br />funds. <br /> <br />Also, the General Assembly has <br />required the Board to fund its operating <br />expenses out of the Construction Fund <br />for the past two years. Previously, a <br />portion of the Board's operating <br />expenses were appropriated out of the State's General Fund. <br /> <br />Board's operating expenses have <br />come out of the Construction <br />Fund for the past two years. <br /> <br />Water Resource Management Is Important in the West <br /> <br />Historically, water resource development has been viewed as a key to economic <br />development in the western states. Water projects have provided water for the <br />irrigation of once arid lands and the growth of cities throughout the west. <br />Colorado's situation is unique in that it contains the headwaters for a number of <br />rivers, including the Colorado, South Platte, Arkansas, and Rio Grande. <br />Downstream states, as well as Mexico, also depend on water from these rivers. <br />Over the years Colorado has entered into compact agreements in an effort to <br />allocate available waters. <br /> <br />There has been a growing recognition <br />of the need for cooperation among <br />various interests in the State to address <br />water-related concerns. There are <br />important issues within the State that <br />need to be dealt with in addition to increasing the beneficial use of water available <br />to Colorado. For example, most of the State's population is located along the <br />eastern slope resulting in a large demand for water. However, water resources are <br />concentrated on the western slope. Also, recreational activities which require <br />water are important to the western slope economy. <br /> <br />There is a growing recognition <br />that water issues require increased <br />cooperation. <br /> <br />In general, the margin of reserves of supply over demand for water has diminished <br />as the west has developed. This means that, in the future, not all water needs may <br />be met at a reasonable cost. As a result, the need for planning in the area of <br />water resources has become increasingly important. <br />