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ir. r- C". _. c New Mexico line, the state of New Mexico throatened legal action against the 3'tate of Colorado. The La Plata Rivor Compact, which became operative in 1925, was the outcome of the 1918 water contro- vorsy. Irrigation dovelopment expanded until about 1929. Since then tho total irrigated area has fallen off considerably because of the dimin- ished water supply during the drought yoars of the 30'S. The pov~lation of the project area, declining for the past 15 years, is estimated at 1,000 porsons, inclusive of the small towns of Hesperus, Kline, Marvel, and Red Mosa in Colorado, and La Plata in Now Mexico. Durango, Colorado, with a population of 5,887 in 1940 is the principal business center and the largest city within 200 miles. Local Industry The project is in a livestock production rogion. Thero are no major nonagricultural industries, although mining nearby is of some importance. At present the project is predominantly a beef and sheep producing area. Dairy herds also are maintained, but in recont years thoy have doc lined, principally bocause of drought. The crops grown in La Plata Basin are closely rolated to the live- stock industry and consist principally of hay, grain, and pasture. Although truck and orchard crops can be grown successfully in much of the area, the inadequate water supply has prevented their extensive production. In the New Moxico division, there was at ono time a con- siderablo area in orchards, but tho undependable water supply and poor marketing facilitios resultod in removal of most of the trees. The San Juan Basin, becauso of its relative isolation from out- side markets, consumes locally a large portion of its products; Wheat is milled locally at tho Long Hollow flour mill or hauled to Durango, Farmington, and Kirtland mills. Cannery facilities are available at Farmington. Improvomont in highway transportation has fostered exten- sion of the local markot to towns throughout the southwest, many of which have little or no sustaining agriculture, and llnlSt depend on outside sources for poultry, eggs, milk products, fruits, and vege- tables. other products find a :ready markot in southern California ci ties. Tho average distance from project lands in Colorado to Durango, the marketing centor of tho area, is about 20 miles. Farmington is about 15 milos from tho New Mexico division. Projoct roads are fair, and excellent major highways, e~tending east and west, pass through Hesporus and Farmington. The narrow gage Rio Grande Southom Railroad traverses the north- om end of tho projoct, providing rail servico to Durango to the east, and connecting with the standard gage Denver and Rio Grando Wostern Railroad at Montrose. Farmington is served by a narrow g'3.ge branch of the Denver and Rio Grande Wostern Railroad, which connects with a standard gage line at Antonito, south of Alamosa. 8