Castle Valley explores water‑banking, nonpotable delivery and municipal reclassification to protect surplus water
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Summary
Council members reviewed options to protect surplus water, including water banking, changing town water rights to municipal classification, and small nonpotable distribution systems; members noted legal complexity, possible state engineer resistance, and the need for technical and legal presentations before action.
The council discussed several options for protecting surplus water and making it available for local nonpotable uses.
Presenter (S4) summarized water‑marketing concepts, describing a water bank as a statutory tool that can protect water from forfeiture while allowing leasing or temporary transfers. Presenter cautioned that the state engineer has in past resisted some water‑bank approaches, and that water‑bank mechanics are complex: “water banking now has its own code and how to do one and it's all very complicated.” Members observed that two water banks have been approved in the state previously but that the political and administrative burden on the first applicant can be high.
Council members also discussed reclassifying town water rights to municipal use to gain greater protections and flexibility. Staff explained practical steps: implementing metering and reporting annual use by gallons for different categories would make a municipal classification more likely; members noted historic multiple points of diversion and distribution patterns could complicate a municipal reclassification.
On distribution, staff described a site visit to municipal or private filling facilities in Colorado that use drive‑up dispensers to sell treated water (described in the meeting as a “water salesman machine”). Members explored small‑scale treatment options such as ultraviolet chambers for compact, lower‑cost on‑site treatment to supply nonpotable needs, while noting state rules and approval would be required before a town could dispense treated water to residents.
Participants agreed the next steps are to obtain a legal briefing and a technical presentation: staff suggested inviting Emily Lewis or other experts to explain water‑bank rules and mechanics; staff will also research whether municipal reclassification and water banking are compatible with the town's groundwater‑surface water configuration.
No formal decision to pursue water banking or reclassification was made; the council asked staff to compile guidance and arrange an expert presentation to evaluate feasibility and legal risks.