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� <br />I <br />In addition, there are many private irrigation ditches in the Study Area <br />lwhich are supplied by direct flow diversion water rights. Approximately <br />16,000 acres are irrigated by private ditches in the Uncompahgre sub-basin <br />I while more than 750 private ditches irrigate approximately 58,000 acres in the <br />Upper Gunnison sub-basin. <br />JMunicipal and industrial (M&I) water use is relatively small in the Study <br />Area in comparison to total water use. The primary M&I water suppliers within <br />—� the Study Area are the Project 7 Water Authority; the municipalities of <br />Gunnison, Crested Butte, Ouray and Ridgway; Mt. Crested 6utte Water and <br />Sanitation District; and the Lake City Area Water and Sanitation.District. In <br />addition, there are many small M&I water suppliers in the basin. <br />IProject 7 Water Authority (Project 1) is by far the largest M&I water <br />supplier in the Study Area. It was created for the purpose of having one <br />Itreated water supplier to serve the Uncompahgre Valley area. Under the <br />present operating arrangement, Project 7 treats raw water and delivers it to <br />Isix water suppliers. Project 7 does not own water rights nor does it have <br />taxing authority, but is reimbursed monthly by each entity for the cost of <br />I treating and delivering water. At present, raw water is purchased by each <br />entity from Tri-County, who in turn purchases water from the UVWUA under an <br />� interim contract until Dallas Creek water supplies 'are available. <br />Additionally, the City of Montrose obtains part of its raw water supply from <br />the Cimarron Ditch and Reservoir Company and then delivers it to Project 7 for <br />� treatment. <br />� The Tri-County Water Conservancy District is the sole purveyor of water <br />from the USBR's Dallas Creek Project. Of the 39,400 af of water available <br />� from that project, 28,100 af is allocated for M&I use. Tri-County has <br />commitments from Montrose, Delta and Olathe to purchase 14,000 af of Dallas <br />, Creek water. <br />2-3 <br />