Lower Basin states lead the way as Arizona, California, Nevada reach historic agreement to protect Colorado River

Published: 05/20/2026

Lower Basin Agreement to provide stability to Colorado River and lakes Mead and Powell

PHOENIX (May 20, 2026) — Today, leaders from the Greater Phoenix business and economic development community are applauding a landmark three-state agreement between Arizona, California, and Nevada to proactively reduce water consumption from the Colorado River. This collaborative proposal, aimed at conserving an additional 3.2 million-plus acre-feet of water through 2028, demonstrates that the Lower Basin remains solution-driven in the face of unprecedented Western drought.

The agreement serves as a vital “bridge,” providing immediate stability to the river system and protecting the long-term viability of Lake Mead and Lake Powell. By taking these proactive steps now, the Lower Basin states are ensuring that the 40 million people who rely on this water and the economies they support can count on a secure future.

“This agreement is a testament to the power of regional collaboration and Arizona’s commitment to being a leader in water stewardship,” said Todd Sanders, President and CEO of the Greater Phoenix Chamber. “By negotiating this three-state plan, Arizona, California, and Nevada have shown that we are proactively building the bridge to a sustainable future together. This kind of decisive action is exactly what our business community needs to ensure long-term economic certainty.”

The proposal includes significant conservation commitments across the board, with California agreeing to reduce usage by approximately 13% and Arizona and Nevada continuing their history of substantial, measurable contributions to the system’s health. This unified front from the Lower Basin provides a clear alternative to the drastic and inequitable reductions to Arizona’s water supply previously proposed by the federal government. It also serves as a roadmap for the type of conservation that should take place in all seven basin states while federal and interstate negotiations continue for post-2026 operating rules.

“Water security is at the foundation of economic development in the Southwest, and the Lower Basin states have shown commitment to driving practical, real-world solutions for the benefit of the region and country as a whole,” said Christine Mackay, President & CEO of the Greater Phoenix Economic Council. “Arizona is a catalyst for the United States’ reshoring priorities, and in ensuring fair water access across the basin, state and regional leaders are taking necessary, proactive steps to continue supporting growth while protecting our most precious resource.”

While the Lower Basin has moved forward with this critical short-term fix, the agreement highlights the importance of continued cooperation across the entire river system. By prioritizing stability over conflict, Arizona, California, and Nevada have set a standard for proactive governance that ensures the Colorado River remains a lifeblood for the American West.

About the Greater Phoenix Chamber

Representing businesses across the Greater Phoenix region since 1888, the Greater Phoenix Chamber catalyzes regional prosperity with forward-thinking public policy, intentional economic growth, and diverse, prepared talent. The Chamber pursues this mission by collaborating with business, political, and community leaders to grow the regional talent pool, create a regional approach to economic development, and drive a pro-Arizona agenda.

About the Greater Phoenix Economic Council

The Greater Phoenix Economic Council (GPEC), globally recognized as a top economic development organization (EDO), works to attract and grow quality businesses and advocate for the competitiveness of Greater Phoenix. A data-driven regional EDO, GPEC works with 22 member communities, Maricopa and Pinal counties and more than 200 private investors to accomplish its mission and serve as a strategic partner to companies across the world as they expand or relocate to Greater Phoenix. Over the past 36 years, GPEC has fueled the regional economy by helping over 1,075 companies, creating more than 195,000 jobs and more than $76.5 billion in capital investment. Greater Phoenix is in a relentless pursuit of innovative and entrepreneurial-focused companies looking to thrive and scale in a vibrant, dynamic region. There is an undeniable spirit about Greater Phoenix; one rooted in strength, collaboration and resilience. Greater Phoenix is Greater Together. For more information about GPEC and how we can assist your businesses, visit www.gpec.org.