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48 C0114:i Through buying senior water rights and leasing short-term supplies, Albuque"1ue has become a focal point for water marketing in New Mexico, PHaro BY PAUL LDGSDQN, fer to new uses. Rural interests across the West have posed several questions, What will happen to the local tax base if irrigators begin sell- ing rights to far-off cities? Will the remaining farmers still be able to find markets for their products? Will the businesses relying on local farmers (e,g., equipment sellers, seed and feed stores) be able to remain profitable? These are the concerns of rural interests that are becoming increas- ingly vocal in town councils and state legislatures in opposing water marketing, Colorado legislators considered a bill in 1987 that would have required water transferrers to pay five times the amount of reve- nue lost to the county from which a water right is purchased and trans- ferred, The Rio Arriba County Commissioners in northern New Mexico recently passed an ordinance declaring a policy against the transfer of water rights from tra- ditional irrigation uses. In other parts of the Rio Grande basin, as well as throughout the West, rural advocates are fighting against an unfettered water market that could undermine the future of rural com- munities. Experience shows that water mar- keting may not necessarily have to bring detrimental effects if innova- tive arrangements can be purs1.led. For example, opportunities for mar- keting may exist through conserva~ tion that are advantageous to both the rural community and the pur- chaser. In southern California, the Metropolitan Water District is negotiating with the Imperial Irriga, tion District to fund water conserva- tion efforts that would stimulate the local Imperial Valley economy, while freeing up salvaged water for use by Los Angeles area munici- palities. Innovative water marketing and transfer ideas hold the potential for helping to meet future water chal- lenges in the Rio Grande region. Any major proposals, however, will meet with significant legal and political hurdles, The Rio Grande Compact, according to some interpretation, does not allow inter- state marketing except between New Mexico and Texas below Ele- phant Bulle, (A federal district court has found that the compact does not apportion Rio Grande pro- ject waters between the two states) Thus Colorado and northern New Mexico waters may not be marketa- ble to EI Paso. The compact also cre- ates onerous water accounting problems for anyone wishing to transfer water north or south of the key gaging station at Otowi bridge where New Mexico's deliveries to Texas are measured. There are numerous questions about the abil- ity of Indian tribes to lease their water off the reservations. Their right to market has been recognized in a few negotiated agreements, but state interests continue to challenge . the idea, Will Congress allow off- reservation marketing by those Indian tribes that may decide to lease water to provide needed capi- tal? New Mexico and Colorado have accepted off reservation in-state marketing by tribes in the Colorado basin in a recent negotiated agree- ment, but Congress must approve all such leasing arrangements involving Indian resources. And how will the courts interpret New Mexicds "public welfare" standard in reviewing proposed water trans- fer applications? These are but a few of the questions that may arise in the coming years as pressures build to reallocate and transfer water rights in the Rio Grande basin, No easy answers will automatically arise to solve these problems, Instead, answers and policies must be formulated through dialogue among various interests whose livelihood, commu- nities and way of life may be affected by the transfer of agricul- tural water rights. ;. ; ~