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<br />-, ' <br /> <br />The report is divided into four parts. Part One provides context by describing the <br />Inyo County jLos Angeles negotiated agreement limiting groundwater pumping in the <br />Owens Valley to protect environmental values and provide the city with a dependable <br />water supply. Part Two defines the public interest in statutory and case law and reviews its <br />application by the courts and regulatory agencies. Part Three presents case studies of <br />water transfer impacts in Colorado's Arkansas River Valley and La Paz County, Arizona, <br />and how public interest criteria are being factored into water allocation decisionmaking <br />processes in northern New Mexico and Eagle County, Colorado. Part Four discusses <br />legislative policy options to incorporate public interest considerations into water transfer <br />decisions, including water planning processes, mitigation and compensation measures for <br />impacts in the area of origin, and incentives to conserve and transfer conserved water. <br /> <br />This report is part of a larger project supported by a grant from The Ford <br />Foundation. The National Conference of State Legislatures is very grateful for the <br />assistance of Walt Coward, director of the foundation's Rural Poverty and Resources <br />Program. <br /> <br />2 <br /> <br />! <br />j <br />I <br />, <br />J' <br />I <br />r <br />