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. . The need for dO~2Stic water in the Project area is critical. After Congress authorized the Dallas Creek Project in 1968, residents :,:,-f th;:; UlEOI':ipc,h'Jre V,:d 12Y ~ "t~:-ough ~h"~ T:ci-Co'Jnty 1:1G-ter ConSO!'",r2ocy District, approved by election a bond issue to construct a rural water system. This system has now been completed with over 340 miles of pipe- line at a cost of approximately $4,000,000 and has been in operation for more than four years. In addition to serving over 1600 rural homes, farms and businesses, Tri-County furnishes supplemental water to the City of Delta, Town of Olathe, the Chipeta Water Company and the Menoken Water Company, the latter two being rural companies. This water transmission and rural water distribution system was constructed on the basis that Dallas Creek Project water would be available by 1979. An interim pot- able water supply is being furnished by the City of Montrose. By agree- ment this temporary supply is to continue until 1979 but is subject to termination by the City of Montrose if water demands exceed the city's capabilities. Since 1969 the rate of expansion and demand for domestic water service in the Ouray, Montrose, and Delta areas has far exceeded the projected rate. Since the City of Montrose furnishes the treated water for Tri-County's domestic system as well as furnishing the supple- mental water which Tri-County delivers to the Town of Olathe, the City of Delta and the two rural water companies, Tri-County's distribution and transmission system and these municipalities and water companies are dependent on Montrose's capability to continue to furnish potable water. All demands of the entire area resulting from future grov~h are likewise dependent upon obtaining additional water supplies from the City of Montrose. At the present time Tri-County has 350 requests for additional new taps and the Cities of Montrose, Delta, and Olathe and the two water companies have pending 1,595 requests for new taps. The City of Montrose and these other water service agencies are now taxed to the capacity of their storage and treatment facilities. They are unable to meet increased usage by the pre- sent users and are unable to serve the needs of the hundreds now requesting domestic water service. Realizing that a critical water problem faces the entire area, in October of 1973 all of the entities furnishing, treating, or distribu- ting domestic, municipal and industrial water in the valley joined together in an effort to resolve the problem. Those cooperating in this effort in- clude all of the municipalities, water companies and agencies above named, and also include the Uncompahgre Valley Water Users Association. Rather than attempting to alleviate the problems in local areas by piecemeal solu- tion, these entities have realized they have a co~mon problem and that the only successful solution is through a joint and cooperative effort. There- fore, this association, the Project Seven of the Uncompahgre Valley, in co- operation with the Colorado Water Conservation Board has proceeded with engineering studies and plans for a program to serve the water needs of the valley until the completion of the Dallas Project, such program to be inte- grated into the Dallas Project. The engineering studies and plans reveal that while the situation m~y be alleviated temporarily the only feasible long term solution to this highly critical water supply problem is the Dallas Creek Project. - 2 -