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nU331.? TO THE GOVERNORS AND RESIDENTS OF COLORADO, lOW A, KANSAS, MINNESOTA, MISSOURI, MONTANA, NEBRASKA, NORTH DAKOTA, SOUTH DAKOTA AND WYOMING: This is the first annual report of the Missouri Basin States Association. The MBSA was created to succeed the Missouri River Basin Commission when the latter was terminated by Presidential Executive Order on September 30, 1981. The governors of the ten basin states supported creation of the Association to continue the long tradition of regional cooperation in water resource management in the basin and to complete two regional water management studies begun by the Commission. The Association's accomplishments in those areas and an audit of the Association's financial activities during fiscal year 1982 are summarized in this report. Much of the Association's effort during its first year of existence has been devoted to defining its role and the scope of its future activities. The Board of Directors adopted an Association purpose which emphasizes fostering communication and information exchange among the member states, various other governmental units and the private sector on water and related resources matters. The Board has also agreed not to involve the Association in any regional water and related resource planning activities, leaving to the states the role of planning and managing water resources within their boundaries. We are looking forward in the coming year to completing analysis of the out-of-basin water transfer issue and sponsoring seminars on state water planning and on the Missouri River basin Pick-Sloan program authorized in the 19lili Flood Control Act. Completion of a test of the Missouri River Basin Water Accounting System will allow 1