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For one thing, the irrigation district has paid for the water that Mexican farmers are using, state officials said, according to a formula under the 1944 treaty. The agreement calls for Mexico to receive 1.5 million acre-feet of water, roughly one-third of what California gets. "They're getting the benefit of water that we've already been charged for," said Dennis Underwood, Colorado River specialist with the Metropolitan Water District of Southern California. "We should be inefficient [and not line the canals] because we want to help our neighbor?" That position is supported by the El Paso-based International Boundary and Water Commission, which has arranged for discussions between Southern California and Mexican water officials over lining the All-American Canal. "We've had discussions on the lining of the All-American Canal over a period of years," spokeswoman Sally Spener said. "Certainly it's been our view that the U.S. is within its rights." U.S. officials note that along with receiving its full allocation under the 1944 treaty, Mexico also receives about 200,000 acre-feet a year because of problems with a storage facility in Imperial County--water that, like the canal seepage, they say belongs to the U.S. Discussions between the U.S. and Mexico over the lining issue have stalled amid an acrimonious dispute between the two countries over the Rio Grande. But California officials insist they are willing to resume discussions. "Our goal has to be: How do we improve your position while protecting our own?" said Maureen Stapleton, general manager of the San Diego County Water Authority. After years of discussions, the Imperial district is now going ahead full throttle with plans to line the All-American Canal and will soon issue a request for bids. The district has come under increased pressure to reduce its Colorado River usage or to produce water savings by relining the canal or through other methods, including leaving some of the half a million acres of Imperial Valley farmland fallow. That pressure is coming from the U.S. government, which has ordered California- -which is perceived as a water hog--to cut back so that Arizona and Nevada can have more Colorado River water. Pressure is also coming from California, which has urgent water needs in urban areas because of population and industrial growth and has been looking to buy extra water from the Imperial district. The district controls 75% of the state's allocation of the Colorado River. The district has also been enticed by a deal to sell excess water to water- short San Diego County for hundreds of millions of dollars, although the deal has yet to be finalized and is facing political opposition and a possible court challenge from environmentalists. 56