ABSTRACT
Because water is a limited resource that often crosses state boundaries, it can lead to competition among the states‡ and may sometimes lead to collective action problems (see Chapter 12). Use of both ground and surface waters by one state may have a profound impact on the water resources of another. An upstream state may choose to appropriate an entire stream so as to deny a downstream state any use of the resource. Likewise, use of an aquifer by one state may lower the water table in another. As one may well imagine, this has led to a fair amount of squabbling among states, particularly in the West. As a general rule, the authority of a state to issue and regulate water in its borders must yield to the vested rights of other states.§
The United States Supreme Court has jurisdiction in disputes between states under Article III § 2 of the United States Constitution. The Court has stated that there must be
* For discussion of game theory, see Chapter 12. † For more on water rights as between states, see 78 Am Jur 2d, Waters §§ 309-315. ‡ For recent cases, see North Dakota v. U.S. Army Corps of Engineers, 05-628 (2006); Arizona v.
