ALBUQUERQUE — The U.S. Supreme Court approved a settlement package in May 2026 to reduce groundwater pumping along the Rio Grande and ensure reliable water deliveries from New Mexico to Texas. The agreement concludes a long-running dispute over management of the river involving New Mexico, Texas, and Colorado.
Texas originally sued New Mexico in 2013, claiming that groundwater pumping was reducing required water deliveries. The Court accepted the recommendation of a special master to move forward with agreements first proposed in 2025 by the three states.
Under the settlement, New Mexico must reduce annual groundwater depletions by 18,200 acre-feet—equivalent to about 5.9 billion gallons—within 10 years, with half of that reduction required within the next five years. The settlement establishes a detailed accounting system for sharing water with Texas, allowing New Mexico to use credits and debits across years to manage variations between drought and wet periods. It also requires retiring water rights from irrigated farmland in southern New Mexico and does not specify which sector must achieve the water savings, permitting industry and municipalities to collaborate with the state to meet the mandates.
Hanna Riseley-White, director of the Interstate Stream Commission, said: "We're very excited to be redirecting resources from costly and lengthy litigation to solutions on the ground." She added that the required reduction represents about 5% to 7% of current groundwater use in the lower Rio Grande.
Officials expect to achieve most of the necessary reductions by purchasing water rights from the agricultural industry, resulting in more retired farmland. Listening sessions began in May 2026, and the first water rights acquisitions are expected to start later that year. New Mexico has secured more than $40 million in federal funding to support implementation.
The solutions outlined in the settlement include long-term fallowing programs, upgrades to irrigation infrastructure, development of new water sources such as brackish or imported water, and improved stormwater management to capture and store more runoff. The states described the agreement as a means to restore order to the system of storing and sharing water between two large irrigation districts in southern New Mexico and western Texas.
Stretches of the Rio Grande as far north as Albuquerque are expected to go dry in 2026, marking the third time in five years. Researchers have warned that unsustainable use of the Rio Grande threatens water security for millions in the binational river basin.