Is the Colorado River Basin Bankrupt?

At the 2025 annual meeting of the Colorado River Water Users Association (“CRWUA”) in Las Vegas, Arizona State University law professor Rhett Larson characterized the search for long-term post-2026 operating criteria for the Colorado River akin to a bankruptcy proceeding. A bankruptcy proceeding provides a forum for various priorities of creditors to “sort out” a failed enterprise and compromise their interests to solve pressing problems promptly.

The analogy is thought-provoking.

Time for the federal government to put the Colorado River Basin States under a five-year federal plan if they fail once again to meet their next deadline (February 14, 2026). Management of the Colorado River cannot wait. A “federal watermaster” should set short-term “rules of the road” as the parties continue to grapple with long-term issues. Time to abandon the past structure of shortage declarations and manage the Colorado River’s future with adaptative, forward-looking risk management.

The case statement has the following components:

• The Hydrologic Challenge

• The Catastrophic Failure of Colorado River Management

• The Impasse of Seven Basin State Perspectives

• Anticipated Future Challenges of Colorado River Management

• Principles of a five-year federal plan