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o By allocating to the Upper Basin a perpetual right of development, we are not forced into a race for development with California, just so we can hoard water and prevent California from getting it. The Compact preserves our future economic opportunity, and our ability to rationally plan for our future. o By making interbasin water marketing illegal, the Compact protects existing agricultural economies in Colorado. These economies would be put on the block for sale to the highest bidder if water marketing were allowed. . The Compact expressly preserves state-created water rights systems, and disavows federal control over water resource allocation. o The Compact is an instrument for interstate cooperation. It prevents the costly and divis\ve lit\gat\on that would inevitably result if states were left to openly compete against each other for the water in the River. o The Compact is the foundation upon which large federal reservoirs, such as Lake Mead, Lake Powell, Blue Mesa, Navajo and Flaming Gorge were built and are operated. These reservoirs hold water for use in the Upper Basin, and for delivery to the Lower Basin. o The security for future development, and operating flexibility of these and other reservoirs, allows for water to be managed in environmentally-friendly ways. The Upper Basin states are working hard to recover endangered fish species in the River. This program would not be possible without the operational framework of the Compact. Contrary to popular perception, California has not been using "Colorado's" water. California has in recent years been using about 5.2 million acre feet of water per year, as against its entitlement of 4.4 million acre feet per year. But until this year, California was using Arizona's and Nevada's unused entitlements, not the Upper Basin's. The Lower Basin as a whole was still within its basic apportionment under the Compact. This year, because of recent wet years and full reservoirs, the Lower Basin will use over 8 million acre feet, as against its 7.5 million acre foot apportionment. Anticipating this increased use, Colorado has taken steps to protect our position under the Compact. In 1991, Colorado led the other six Colorado River Basin states in insisting that California go on a "water diet" to get its use back to its basic apportionment. We put California water users on notice that we would expect them to live within California's apportionment -- and abide by the Compact. With the backing ofInterior Secretary Babbitt, California has acknowledged its legal responsibility and is working on a "4.4 Plan" to do just that. Implementing the California 4.4 Plan will not only reduce California's overreliance on Colorado River water, but also it will affirm for Colorado and the other Upper Basin states the protections afforded to us under the Compact. Colorado's position has been that Lower Basin water allocation problems, such as California's overuse and Nevada's future needs, should be solved in the Lower Basin. These Lower Basin problems should not be solved at the expense of the Upper Basin. Secretary Babbitt's proposal to allow water banking -- not water transfers -- between