U.S. Supreme Court approves Rio Grande compact settlement – Agreement ends 13-year interstate dispute 

SANTA FE – The U. S. Supreme Court Tuesday approved a historic settlement ending more than a decade of litigation over Rio Grande water rights, shielding New Mexico taxpayers from billions of dollars in potential liability and establishing a long-term water management framework for communities, farms and businesses across the Lower Rio Grande Basin.

The settlement resolves Texas v. New Mexico and Colorado, a case centered on claims that New Mexico had been overusing groundwater. The settlement, reached between New Mexico, Texas, Colorado and the United States, addresses surface water deliveries and groundwater uses below Elephant Butte Reservoir. The agreement will provide clarity for water users and local communities, enabling regional businesses to plan with certainty.

“Water is the foundation of New Mexico’s agricultural economy and the lifeblood of communities across the southern part of our state,” said Governor Michelle Lujan Grisham. “This settlement means farmers in the Lower Rio Grande can plan for the future, communities have certainty about their water supply and New Mexicans aren’t on the hook for a liability that could have cost billions.”

“This settlement represents a fair and responsible resolution to a decade of litigation that carried enormous financial risk for New Mexico,” said Attorney General Raúl Torrez. “Had this case continued and the Court ruled against us, New Mexico taxpayers could have faced billions of dollars in liability to Texas. Instead, this agreement protects our state’s interests, provides certainty for water users and communities across the region, and establishes a practical framework for managing one of our most vital resources for years to come.” 

“This agreement gives New Mexico the tools, flexibility, and time needed to meet our legal obligations while continuing to support agriculture, economic activity, and responsible water management across the region,” said State Engineer Elizabeth Anderson.

Under the settlement, New Mexico will continue work already underway in the Lower Rio Grande to improve water management, support conservation, strengthen data and monitoring, and plan for long-term aquifer sustainability in partnership with local water users and communities.
“We all rely on water, and this settlement helps protect New Mexico’s water future while supporting the communities, farms, and businesses that depend on the Rio Grande,” said New Mexico Interstate Stream Commission Director Hannah Riseley White. “We are grateful for the years of effort among the many parties that brought us to this agreement, creating a collaborative path forward grounded in science, law, and long-term stewardship.”

The agreement establishes a new water accounting framework and allows for continued groundwater use in both New Mexico and Texas within a clear and enforceable system. It concludes one of the most significant interstate water disputes in recent New Mexico history.