As Wyoming and other Colorado River Basin states grapple with ways to keep a river more than 40 million people, agriculture and industry depend on flowing, Wall Street is tapping water scarcity to deliver steep profits.

Gary Wockner, director of the group Save the Colorado, said hedge funds and other investors have acquired key parcels of land with water rights. In the early 2000s, Wockner pointed out, you could buy Colorado River water for about $8,000 dollars per acre foot. Last year, an acre foot was selling for $80,000 dollars.

"Over a 20-year period, it went up 1,000% in price," Wockner noted. "That's 50% per year, and that's a pretty good profit, no matter what you're investing in. And this is going on throughout the southwest United States."

A recent CBS News report revealed New York-based hedge fund Water Asset Management, whose president once called U.S. water "a trillion-dollar market opportunity," has invested $20 million in western lands over the last five years. The company, for its part, said its investments work to ensure supplies of quality water.

Wockner cautioned efforts to parlay water rights to command higher prices from southwestern cities whose populations continue to swell will likely continue, unless federal or state governments intervene. He emphasized the incentive to remove water, combined with a 23-year-old drought and climate change, has put the long-term health of the river at great risk.

"There's been less and less water in the river, so we're seeing dramatic negative impacts to the ecological health of the river itself," Wockner stressed. "Fish species are being impacted. Riparian habitat, wildlife habitat, wetlands, et cetera, they're all being impacted."

Wyoming -- along with Arizona, Colorado, Nevada, New Mexico and Utah -- recently submitted a proposal for ways to keep reservoirs from bottoming out. The U.S. Bureau of Reclamation is expected to release new rules this summer for dealing with shortages.

Wockner believes the role of government should not only be to ensure specific batches of water are delivered through the Colorado River to customers.

"But also to protect the public health and the environment," Wockner asserted. "The government's role isn't to find a way for investors and wildly rich people to make more and more money off of Colorado River water."

Iowa is getting federal help to eliminate lead water pipes in the state.

The Iowa Department of Natural Resources is working with local water agencies, planning where to prioritize funds.

As part of the Bipartisan Infrastructure Law, cities and towns in Iowa are reducing the number of dangerous lead water lines.

The Iowa Environmental Council's Director of Climate Initiatives Cody Smith said even homes built as recently as 1988 are connected to the local water utility with lead lines - which leaves people at risk, even in Iowa's big cities like Des Moines and Council Bluffs.

"Particularly with the most vulnerable groups, such as unborn babies or young children, they have extreme and outsize risk related to exposure to lead through lead service lines," said Smith. "That can cause higher levels of lead in the blood and lead to developmental issues for children."

The State's Revolving Fund, which is the primary source for water infrastructure updates, has received more than $620 million as part of the Bipartisan Infrastructure Law.

The IEC says more than 700 communities have benefited so far.

Beyond replacing lead pipes and updating water system infrastructure, Smith said Iowa could also benefit from help with what are known as non-point source projects.

"Which is runoff from agricultural fields and from livestock operations that lead to nutrient pollution in source water," said Smith. "And source water is water that's used for drinking water somewhere in the state."

Smith said those strategies can help farmers and local utilities reduce nitrates and other pollutants in the soil.

The Biden administration has a goal of replacing all lead water service lines in the U.S. by 2031.




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Nearly a year after the U.S. Supreme Court left key watersheds unprotected by the Clean Water Act, the Polis administration has designated new protections for some 385 miles across 15 rivers and streams in the Upper and Lower Colorado, Eagle, Yampa and Roaring Fork river basins.

Chad Rudow, water quality program manager with the Roaring Fork Conservancy, said the Outstanding Waters designation is an important tool for protecting drinking water.

"Which means it's protecting the actual quality of the water, and that's the highest level of protection that can be given to a stream within the state of Colorado," he said.

The designation aims to protect existing high-quality waterways from any future degradation, including pollution from development, mining, oil and gas extraction, and other uses. It does not affect any existing uses in the watershed, so long as they don't degrade current water quality.

The designation, which won unanimous approval by the Colorado Water Quality Control Commission in late August, comes after years of work done by conservation groups.

Carrie Sandstedt, senior officer with The Pew Charitable Trusts, said protections are still needed for many streams in the state, and added that protecting water quality is critical not only for drinking water but also healthy wildlife habitat and ecosystems.

"This designation not only protects rivers and streams, it also protects their associated wetlands. It helps preserve important plant life and other species critical for healthy freshwater habitats," she said.

The designation also protects one of the state's biggest economic drivers. A recent study found that Colorado's river basins generated nearly $11 billion in outdoor recreation spending in 2019. Rudow noted clean water is essential for swimming, rafting and other activities across the Roaring Fork Valley.

"We have the second longest contiguous reach of Gold Medal water in our watersheds, so that's high-quality fishing streams. People come from all over the world, literally, to go fly fishing," he explained.

World Water Week is underway, as leaders forge discussions on the global water crisis. Supply issues aren't as urgent in North Dakota, but that doesn't mean conservation is an afterthought.

Dani Quissell - executive director of the North Dakota Water Education Foundation - said the state is lucky to sit on a more predictable water supply, namely the Missouri River, when compared to elsewhere in the U.S.

But she acknowledged that droughts in recent years serve as a reminder for state & local governments, and residents, to not take this precious resource for granted.

At home, she said basic conservation tips still apply.

"Being mindful on when we're letting the tap run where you're filling a pitcher," said Quissell, "and then you walk away for a minute to go let the dog out or something, keeping in mind that that water is running over and right down the drain."

She said that mindfulness should also come into play with other daily practices, like brushing your teeth.

As for policymakers, Quissell encouraged strong communication across various agencies - to ensure water supplies are prioritized when mapping out commercial and residential development.

Surging demand and uneven regulations have plagued western states as key water sources dry up.

Quissell argued that North Dakota closely monitors water use around the state. As climate change threats take shape, she said that has to be the approach moving forward.

"It's a mindset to have in wet periods and dry periods," said Quissell. "I think you build those habits over the long term. I think it's important to be thinking about being a good steward of the resource to have available for our children and our grandchildren."

Agriculture is one sector that has come under scrutiny for how it uses up water for food production. But Quissell said innovation and technology have helped to address that problem.

For homeowners irrigating their lawns, she urged them to run sprinklers at dusk or pre-dawn. That way, the water won't quickly evaporate in the midday heat.



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