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<br />Shortly after the November 1990 elections, Representative Guenther suggested that <br />the 1991 legislative approach to protecting areas of origin might be to shift the focus away <br />from water transfers per se and toward statewide water management. The strategy could <br />include consideration of water replenishment districts in active management areas, <br />whereby a central district agency would operate a water bank that would pool the AMA's <br />water supplies for use by municipalities as needed. That approach could reduce the need <br />for groundwater transfers from agriculturalland--"water farms would no longer be used as <br />a tool for competitive growth among municipalities in active management areas:057 The <br />water replenishment district concept, and proposals aimed specifically at protecting rural <br />communities from water transfer impacts that have been introduced in the 1991 Arizona <br />legislative session, are discussed in Part Four of this report, <br /> <br />Northern New Mexico <br /> <br />The issues raised in the case of Sleeper v. Ensenada Land and Water Association, No. <br /> <br />RA 84-53(C), slip. op. (N.M, Dist. Ct., April 16, 1985), illustrate the potential for <br />consideration of community values in water transfer applications. The initial court ruling, <br />subsequently overturned on grounds unrelated to public interest questions, squarely <br />addressed the dichotomy between economic benefits and difficult-to-quantify rural <br />community values. The judge came down on the side of protecting his interpretation of <br />what constitutes the public interest. <br /> <br />The case involved the acquisition of farmland near Ensenada, New Mexico, to <br />obtain the appurtenant water rights for subsequent transfer to a nonagricultural use (a ski <br />resort). The effect of the proposed transfer was to retire formerly irrigated land (65 acres <br />on a temporary basis, 14 acres permanently). The transfer application was filed with the <br />state engineer in 1982 (prior to enactment of New Mexico's "public welfare" statute). The <br /> <br />27 <br />