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0003~2 \ I. Backqround Any discussion about metropolitan cooperation dealing with water supplies must recognize the inherent legal underpinnings of our water rights system. This system recognizes seniority of water rights based on time and the transferability of these rights relying on market conditions. . Colorado has no comprehensive "water plan" that directs the development and use of water. The Colorado Constitution provides the basis for a system of water allocation which relies on a market-oriented system. The state's prior appropriation system is sufficiently unique that it is frequently referred to as the Colorado doctrine. While Colorado does not have a coherent water plan or policy, it does have a legal and institutional framework for establishing water policies which goes far beyond the individual right of appropriation. Legislative, executive, and judicial decisions have served to generate Colorado's water policy. Thus, the state relies principally upon the free market for the allocation of water; however, these allocation decisions are bounded by other public-interest concerns as reflected in court decisions and state statutues. Concerns over water have changed. Generally speaking, until the past two decades, Colorado was primarily concerned about preserving its share of water under interstate compacts. This was accomplished through the development of water storage projects, especially federal-reclamation projects. In recent years, other concerns have also surfaced, but not supplanted this more traditional concern. Examples include: o Protection of underground aquifers and novel efforts to integrate surface water and groundwater resources. o Protection of environmental values and the creation of a state in-stream flow program. o Protection of endangered species including the passage of a state Endangered Species Act. o Protection of water quality and the enactment of the Water Quality Control Act. There have been efforts to add more efficiency to the system. The Colorado Water and Power Development Authority has undertaken basin-by-basin studies to identify water project opportunities. A satellite monitoring system allows the state to more accurately guage and manage flows. And, more pertinent to the present concern, Governor Lamm established a Metropolitan Roundtable which established a forum in which opposing interests could legitimately express their views about Colorado water policy and, in particular, how water would be supplied to metropolitan entities.