ABSTRACT
A 1984 proposal by the Galloway Group Limited, a Colorado corporation, to lease water rights in that state to San Diego County in California poses new questions about how Colorado River Compact rights can be utilized. If compact rights can be leased between states, then market trading could increase flexibility in allocating water along the length of the Colorado River and provide revenues to basin states that are not fully utilizing their compact shares. This chapter reviews state allocations under the Colorado River Compact, the details of the Galloway proposal, the principal legal questions that have been raised, and some of the potential advantages of interstate leasing.
