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. to .,"" .-I C"t'') C..::. ~ . . . I. . . I I . '. . GOVERNOR'S CENTRAL ARIZONA PROJECT ADVISORY COMMITTEE Water Marketina Issues . CAWCD and DWR should develop a program for intrastate marketing of CAP water. The program should enable the operation of the CAP to benefit financially from such arrangements by implementing a fee structure for such transfers. Additional benefits could also be realized by increased utilization if parties not using CAP water transferred their contracts to those who will. . DWR should study the feasibility of arrangements in which California and Nevada take advantage of unused entitlement and canal capacity to store water in Arizona in exchange for the right to increased Colorado River diversions in the future. The cost for such water banking should be borne in full by the contracting state. This type of program could be beneficial to Arizona because it would provide a long-term source of water to a neighboring state without reducing Arizona's Colorado River entitlement and would provide additional utilization of the Project thereby reducing costs for Arizona contractors and subcontractors. Indian Issues . Becaus :t is in the best interest of the Indian communities, the federal government and the state, the state should request that the federal government make settlem 'It of outstanding Indian water rights claims in Arizona a priority. I , . '. The sta ~ should offer its assistance in any way that is appropriate to encourage " complet ;',n of water rights settlement negotiations among the Indians, federal and local go '!rnments and other entities. In particular. the state should encourage the federal 'overnment to make Indian settlements apriority, especially those settlem ts which have been completed between the Indians and local entities. FINAL REPORT A 10 RECOMMENDA TlONS 29