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001103 were given the option of settling on 160 acre allotments, or moving to the western portion of the Reservation. Non-Indians were able to acquire some of these allotments as well. In 1934 this homesteading process was closed. The result was the present configuration of checkerboard Indian and non-Indian lands on the Southern Ute Reservation and the contiguous block nature of the Ute Mountain Ute Reservation. These lands are downstream from non-Indian development in Colorado. Almost every river in southwestern Colorado passes through one or both of the Reservations. The rights of Indian Tribes to reserved water is based on the date of the reservation. In the late 1800' s, non-Indian i=igation was beginning upstream from the Reservation, on the pine River. The Southern Ute Tribe filed claims for irrigation purposes in 1895, and water litigation ensued which lasted until 1930, when a federal court awarded the Indian claimants the number one water right on the pine River. This created a severe water shortage for the non- Indian irrigators, and resulted in the construction of Vallecito Dam in 1941, to serve both Indian and non-Indian lands. In contrast, the Mancos project was developed on the Mancos River by 1950. Although the Mancos River is the primary river through the Ute Mountain Ute Reservation, the Tribe did not receive the benefit of water service from the Project. In fact, the town of Towaoc, which is on the Ute Mountain Ute Reservation, did not even have a potable water supply until 1990, as part of the implementation of terms under the 1986 Settlement Agreement. Colorado is a semi-arid state and the precipitation it receives, 16.5 inches on average, varies significantly from year to year. Droughts occur frequently and can last several years. Therefore, the ability to capture and store water during times of plenty is critical to providing a stable economy. In 1956, Congress enacted the Colorado River Storage Project Act (CRSP), which provided for comprehensive water development throughout the Upper Colorado River Basin. This Act authorized the construction of the initial CRSP units -- Curecanti, Flaming Gorge, Navajo and Glen Canyon; a number of participating projects, including the Florida Project; and the preparation of planning reports including the Animas-La Plata and Dolores Projects. The Florida proj ect was completed to serve lands on Florida Mesa in 1963, which included some Indian lands but which did not completely meet Indian needs. The CRSP Act also established a mechanism for assisting in the funding of construction of these and other projects, through the creation of the Upper Colorado River Basin Fund (the "Basin Fund"). In short, hydroelectric power revenues generated from the CRSP Units are credited to the Fund to pay for certain construction, operation and maintenance costs of the initial CRSP units. The balance of any revenues are credited to each of the upper basin states to pay for that portion of the construction costs of participating projects allocated to irrigation, that are beyond the ability of irrigators to repay. Additionally, participating projects can take advantage of favorable rates for CRSP power. In 1968, Congress enacted the Colorado River Basin proj ect Act