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<br />~ <br /> <br />0083 <br /> <br />the Court considered whether a state agency could deny permission <br />to a federal licensee under the Federal Power Act to construct <br />a hydroelectric dam on lands of the United StateS-that had <br />been reserved for that purpose. The state argued, relying on <br />the Court's broad language in California Oregon Power Co. v. <br />Beaver Portland Cement Co., (see pp. 21-22 supra), that by the <br />Desert Land Act of 1877 Congress had expressly conveyed to <br />the states the power to regulate all unappropriated water <br />within their borders, and that therefore, in the exercise of <br />its police powers, Oregon could deny use of those waters to an <br />individual, even if the federal government had otherwise licensed <br />the use. The Court rejected the state's arguments on the <br />ground that the Desert Land Act applies only to public domain <br />lands and does not apply to lands that have been reserved by <br />the federal government, even if the land was reserved after <br />passage of the Desert Land Act. See 349 U.S. at 448. Although <br />the Pelton Darn decision did not involve directly the federal <br />government's right to use water because the licensee was a <br />private party, the Court's holding implies that the licensee <br />was exercising some right of the United States to use water <br />that had been reserved from state control at the time the <br />United States reserved the dam site. See, e.g., Cappaert v. <br />United States, supra, 426 U.S. at 144 n.lO;-Federal Power <br />CommIssIon v. Oregon, supra, 349 U.S. at 453 (Douglas, J., <br />dIssentIng). <br /> <br />The applicability of the reserved right doctrine <br />to all federal reservations was confirmed in Arizona v. <br />California, 373 U.S. 546 (1963). There, the Court upheld, <br />with lIttle discussion, a Master's award of reserved rights to <br />the United States in several national wildlife refuges and the <br />Gila National Forest: ' <br /> <br />The Master ruled that the principle underlying <br />the reservation of water rights for Indian <br />Reservations was equally applicable to other <br />federal establishments such as National Recreation <br />Areas and National Forests. We agree with the con- <br />clusions of the Master that the United States intended <br />to reserve water sufficient for the future requirements <br />of the Lake Mead National Recreation Area, the <br />Havasu Lake National wildlife Refuge, the Imperial <br />National Wildlife Refuge and the Gila National Forest. <br /> <br />373 U.S. at 601. <br /> <br />The scope of the reserved rights doctrine on non-Indian <br />land remained somewhat uncertain until the Supreme Court's <br />decisions in Cappaert v. united States, supra, and United <br />States v. New MexIco, supra. In Cappaert, the Court unanimously <br />held that the reservation of Devil's Hole as a national monument <br />under the American Antiquities Preservation Act, supra n.25, <br /> <br />27 - <br /> <br />, <br />