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<br />DRAFT <br /> <br />impaired or increased in cost has generally been thought to mean <br /> <br />that a compensatory reservoir must be constructed on the West <br /> <br />Slope.67 <br /> <br />3 . <br /> <br />Judicial Interpretation. <br /> <br />Reference has already been <br /> <br />made to the case of Metropolitan Suburban Water Users Association <br /> <br /> <br />v. Colorado River Water Conservation District68 in which the <br /> <br />Colorado Supreme Court concl uded unequ i vocably that wa ter may be <br /> <br /> <br />diverted and applied to a beneficial use anywhere in the state.69 <br /> <br />The entities proposing diversions from the West Slope in that <br /> <br />case were all cities. <br /> <br />A major challenge to the constitutionality of the Colorado <br /> <br />area of origin protection statute was raised in Central Colorado <br /> <br />Water Conservancy District v. Colorado River Water Conservation <br /> <br />oistrict.70 <br /> <br />There the conservancy district argued that the <br /> <br />67AS Beise notes, exportation. of water necessarily reduces <br />available supplies. "Therefore, a practical interpretation of <br />the Act is that a project proposing to divert water from the <br />Colorado River Basin must construct a compensatory reservoir <br />which will leave the West Slope in as good condition for present <br />and future development purposes as if the transporting project <br />had not been constructed and the river involved had remained <br />unregulated." Id. at 459. Beise goes on to point out the <br />substantial uncertainty involved in determining whether a <br />diversion projeci will increase the costs of future water uses on <br />the West Slope. <br /> <br />68supra note 54. <br /> <br />69It is not clear from the opinion what the legal basis was <br />for the argument that the City of Denver cannot engage in <br />transmountain diversions. Apparently, it was not based on an <br />argument that Denver should be covered by the Colorado statute <br />governing conservancy districts. <br /> <br />70186 Colo. 193, 526 P.2d 302 (1974). <br /> <br />29 <br />