New Mexico, Texas Settle Rio Grande Water Dispute

AG: New Mexico Press Releases

Filed August 29th, 2025

Detected March 21st, 2026

Summary

New Mexico, Texas, Colorado, and the U.S. have filed settlement agreements with the Supreme Court Special Master to resolve a decade-long water dispute over the Rio Grande. The agreements aim to provide certainty for water users and ensure long-term compliance with the Rio Grande Compact.

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What changed

New Mexico, Texas, and Colorado, along with the United States, have submitted a package of settlement agreements to the U.S. Supreme Court's Special Master in the case Texas v. New Mexico and Colorado. This action seeks to dismiss the decade-long litigation concerning the Rio Grande Compact and water resource management in the Lower Rio Grande. The agreements, developed with input from relevant irrigation districts, are intended to provide water users in New Mexico and Texas with certainty and ensure sustainable compliance with water management practices.

Compliance officers should note that the U.S. Supreme Court's Special Master will review these agreements on September 29, 2025, and will make a recommendation to the Supreme Court for final approval. If approved, the settlement will offer long-term certainty for water users and local economies in the Lower Rio Grande, potentially impacting water allocation and usage strategies. While this resolves interstate litigation, entities involved in water management in the affected basins should be aware of the final decision and its implications for compliance with the Rio Grande Compact.

What to do next

Monitor U.S. Supreme Court Special Master's recommendation and final decision.
Review settlement agreements for implications on water resource management practices.

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New Mexico, Texas reach settlement agreements in decade-long Rio Grande water dispute

August 29, 2025

SANTA FE – New Mexico, Texas, Colorado and the United States today filed a package of settlement agreements with the Special Master in the U.S. Supreme Court case Texas v New Mexico and Colorado and requested dismissal of the case.

The agreements, drafted with participation from relevant irrigation districts in New Mexico and Texas, resolve over a decade of interstate litigation and allow the states and their water users to move forward in implementing sustainable long-term compliance with the Rio Grande Compact and water resources management practices in the Lower Rio Grande.

The U.S. Supreme Court’s Special Master will consider the package of settlement agreements at a hearing in Philadelphia on September 29. Following the hearing, the Special Master will provide a report of his findings and make a recommendation to the U.S. Supreme Court, which will make the final decision in the case. If approved by the Court, the settlement will provide certainty for water users in New Mexico and Texas and ensure that local communities and economies in the Lower Rio Grande can continue to thrive.

“This settlement brings an end to more than a decade of costly and contentious litigation and provides a clear path forward for New Mexico,” said Attorney General Raul Torrez. “By working together with our neighboring states and the federal government, we have secured an agreement that protects the interests of New Mexico water users while ensuring long-term compliance with the Rio Grande Compact. This is a significant milestone for our communities, our farmers, and for the future of water management in the basin.”

“This historic settlement allows New Mexico to maintain control of our water uses and adds flexibility to how we are able to meet our Compact requirements,” said New Mexico State Engineer Elizabeth Anderson. “By working together with the local water users, the other states and the federal government, we have crafted a solution that meets the needs of all the parties.”

“The settlement reflects input from New Mexico water users and implements sound water management strategies that will provide certainty and reliability to New Mexico communities throughout the Rio Grande Basin,” said New Mexico Interstate Stream Commission Director Hannah Riseley-White. “We appreciate the cooperation among the states in getting us to this important milestone.”

The Rio Grande provides water to approximately six million people in Colorado, New Mexico, Texas and the Republic of Mexico. The dispute between Texas and New Mexico began in 2013. A related case filed by New Mexico against the United States in 2011, will also be dismissed as a result of the settlement.

Groundwater Settlement Agreement w appendices

MPA Conversion Contract

MPA Third Party Implementing Contract

Operations Settlement Agreement