Nevada Approves Historic Water Rights Buyback to Combat Drought

In a sweeping move to preserve groundwater for Nevada's future, Governor Joe Lombardo signed Assembly Bill 104 and Senate Bill 36 into law, creating the Nevada Voluntary Water Rights Retirement Program and establishing a dedicated fund to purchase and retire groundwater rights from willing sellers. The program, which originated from legislation proposed by Senator Pete Goicoechea, will enable agricultural producers and other groundwater rights holders to voluntarily retire their rights in areas where water use exceeds long-term availability, with applications accepted through June 30, 2035. The initiative reflects a fundamental change in Nevada's approach to water management. Once groundwater rights are purchased and retired under the program, they are permanently removed from use, preventing future appropriation and helping stabilize critical aquifers across the state. The Account for Retiring Water Rights, housed within the Department of Conservation and Natural Resources, will serve as the funding mechanism for these purchases, providing financial incentives for voluntary participation. The legislation has garnered rare bipartisan support from legislators, agricultural producers, water managers, and conservation groups who recognize the urgency of the state's water crisis. Nevada's groundwater depletion has accelerated in recent years as surface water allocations from the Colorado River have declined due to regional drought conditions. By enabling voluntary retirement of rights, the state aims to reduce unsustainable groundwater pumping while avoiding the contentious forced restrictions that have characterized water policy debates in the West. Complementing the buyback initiative, lawmakers also advanced Assembly Bill 134, which allows holders of perfected water rights to submit conservation plans to the State Engineer for approval. The measure aims to "promote and encourage the conservation, development, augmentation and efficient use" of Nevada's water through practices including improved irrigation, crop rotation, and reductions in surface and seepage losses. Together, these legislative actions represent Carson City's most comprehensive effort to date in addressing Nevada's structural water deficit. As the state continues to face uncertainty over Colorado River allocations and ongoing mega-drought conditions, the voluntary retirement program and conservation measures signal a pragmatic recognition that protecting Nevada's groundwater supply will require both financial incentives and regulatory flexibility.