BOARD01008

• Board Meeting Date: 1/27/2004
• Description: CWCB Director's Report
• Board Meetings - Doc Type: Memo

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Hoover Dam on October 16, 2003, we achieved a great victory for the people of the Colorado
River basin. This victory was the result of the patience, perseverance, and relentless efforts of
the seven states and the 4 California water management agencies.

As a result of your success, we see a brighter future on the river - a future with greater certainty
and cooperation than exists in any river basin in the West.

Together, we have added a page to the river-s storied history.

The C!llorado River Water Delivery Agreement of 2003

The Colorado River Water Delivery Agreement of2003 resolved issues that had been unresolved
for 75 years. That fact alone proves that the Agreement is an historic event.

But the true importance of the Agreement is not found in the past. The 2003 Agreement is
perhaps the most important negotiated agreement on the River since the Colorado River
Compact of 1922 because of what it does for our future:

The Agreement implements the promise California made in 1929 to limit its Colorado
River water use to 4.4 million acre-feet in a year of normal water availability.

The Agreement defines and quantifies the water entitlements of California's major
Colorado River water users for as long as 75 years.

The Agreement respects the allocations among the basin states and thus provides
stability to each of the seven basin states.

The Agreement provides California water users with the ability to use market forces as
a tool for water allocation decisions within the state.

Finally, the execution of the 2003 Water Delivery Agreement confirms the importance
ofthe institutional relationships that have characterized the Colorado River. It took
over a decade to achieve, but thanks to the tireless work of all seven Colorado River
Basin States, the four California entities, and the San Luis Settlement Parties, we all
made it across the finish line together.

This Agreement proves once again that cooperation and collaboration between the States, the
federal government, and other stakeholders on the Colorado River can address and resolve even
the most difficult issues. .

We used negotiation instead of litigation, which builds trust, and this will serve us well as we
meet the challenges of the future. The leadership provided by the basin states, including their
proven ability to reach agreement on issues that affect an entire geographic region, has been
critical to reaching these Colorado River agreements.

As Secretary, I appreciate these productive and successful working relationships. I particularly
value the close working relationship that we share on the Colorado River because it illustrates

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