EconomyHow Water Scarcity Is Changing the Economics of the Southwest

The Colorado River supplies seven states and supports an estimated $1.4 trillion in annual economic activity. Decades of decline, record-low snowpack and shrinking reservoirs have pushed the system toward crisis, with Lake Powell nearing levels that could endanger hydropower. As key rules expire without a long-term state agreement, the federal government is proposing cuts to lower-basin water use, with Arizona facing the hardest impact.