Bloomberg
How Water Scarcity Is Changing the Economics of the Southwest
Sunday, August 23, 2026
The Colorado River supplies water to seven states and supports approximately 1.4 trillion dollars in annual economic activity. Water levels in Lake Powell have declined to levels that officials warn could affect hydropower production. The federal government proposed cuts to lower-basin water use, with Arizona receiving the largest reduction. States have not reached a long-term agreement as key water-sharing rules expire.
