Community engagement and collaboration, Habitat restoration, Water conservation
Environmental Water Leasing and Endangered Species Conservation in the Middle Rio Grande Valley
Case Study by the Conservation and Adaptation Resources Toolbox
Status
Ongoing

Location

States

New Mexico

Ecosystem

River/stream

Subject

Agriculture
Drought
Fishes
Outreach
Partnerships
Reservoirs
Riparian areas
Rivers and streams
Water budget

Introduction

Three staff members stand in a construction area
Image Details

Water is a scarce and invaluable resource in the desert Southwest for municipalities, farmers, and at-risk species alike. Historically, the Pueblo and Hispaño communities of the Rio Grande Valley in New Mexico have relied on acequias, traditional gravity-fed canals that divert surface water from rivers or streams to irrigate fields, croplands, and pastures. Following widespread Anglo colonization in the mid-19th century, New Mexico’s population increased by 170% (Buynak and Widdison 2007). The resulting heightened demand for water resources, coupled with accelerating drought conditions in the valley, have compromised the river’s ability to provide consistent water for all its users during the driest parts of the year. Local farming communities and endangered wildlife species like the Rio Grande Silvery Minnow (Hybognathus amarus, silvery minnow) are particularly vulnerable to shortages in water resources.  

The Middle Rio Grande Conservancy District (MRGCD) manages the largest volume of water in the Middle Rio Grande Valley of central New Mexico. In the middle Rio Grande (MRG) valley, water rights are unadjudicated, meaning each irrigator’s entitlement to surface water from the Rio Grande has not been explicitly quantified in a court of law. This is unique to the MRG and means irrigators receive water in parity with one another, rather than operating under the doctrine of prior appropriation, like much of the Southwest, which prioritizes water delivery to the most senior water rights holders during times of shortage. Six pueblos in the Middle Rio Grande enjoy Prior & Paramount (P&P) water rights. Otherwise, all irrigators in the valley share an equal right to water, and are all equally burdened by supply shortage during times of drought. In addition to managing water for local agriculture, the MRGCD must ensure there is adequate water to maintain critical habitat for endangered species and meet water sharing agreements with downstream states. 

In order to balance competing demands on water resources and provide financial flexibility for local irrigators in the valley during periods of drought, MRGCD implemented a wide-ranging conservation program in 2019. This program facilitates various projects, such as voluntary water leasing, improvements to water delivery and on-farm irrigation infrastructure, and riparian riparian
Definition of riparian habitat or riparian areas.

Learn more about riparian habitat restoration.  

Key Issues Addressed

Drought is a recurrent condition in New Mexico due to the region’s semi-arid climate. Local impacts of climate change climate change
Climate change includes both global warming driven by human-induced emissions of greenhouse gases and the resulting large-scale shifts in weather patterns. Though there have been previous periods of climatic change, since the mid-20th century humans have had an unprecedented impact on Earth's climate system and caused change on a global scale.

Learn more about climate change , such as decreased snowpack and extreme temperatures, can increase the frequency and severity of dry periods by reducing water availability. El Vado Dam once provided critical water storage to supplement flows in the middle Rio Grande during periods of drought, but the dam is currently undergoing Safety of Dams rehabilitation by the Bureau of Reclamation. In addition, the irrigation infrastructure on many farms in the valley is outdated and inefficient, often requiring excessive amounts of water to irrigate a crop. Recurrent drought combined with a lack of upstream water storage means that portions of the Rio Grande are prone to drying out completely during the summer. 

Local farming communities are vulnerable to river drying. Since farmers in the valley utilize the acequia system, many have no alternative means to water their fields when the river channel dries. Unless the valley receives plentiful monsoons, croplands can fail and pastures go dry, leading to economic hardship for farmers. 

River drying can also cause mass fish kills, threatening endangered species such as the Rio Grande Silvery Minnow. A 2016 U.S. Fish and Wildlife Service Biological Opinion mandated delivery of water by MRGCD to supplement flows in the Rio Grande to maintain critical habitat for silvery minnow. Other threatened and endangered species, such as the Yellow-Billed Cuckoo (Coccyzus americanus) and the Southwestern Willow Flycatcher (Empidonax trailii extimus) also depend on the river and surrounding riparian vegetation for critical nesting habitat. 

In addition to supplying water for local users and endangered species, the state of New Mexico is obligated to deliver water downstream to Elephant Butte reservoir each year for use by Texas and New Mexico farmers in the Lower Rio Grande, as per the Rio Grande Compact of 1938. This annual requirement can be difficult or impossible to fulfill in some years due to variable hydrology. New Mexico is close to violating the terms of the Rio Grande Compact, and if the state’s cumulative debt reaches 200,000 acre-feet, the state could incur significant fines and litigation.

Project Goals

  • Implement the conservation program to increase water savings in the valley, support the local agricultural community, and fulfill interstate water obligations.
  • Facilitate voluntary water leasing to provide flexibility for farmers and maintain flows in the Rio Grande during times of low water availability.
  • Deliver leased water to endangered silvery minnow critical habitat to comply with 2016 Biological Opinion.

Project Highlights

  • Temporary Water Leasing: MRGCD’s Environmental Water Leasing Program (EWLP) allows farmers in the valley to voluntarily lease their water to the district for a full- or half-season, and has proven to be an effective tool for reducing water demand in the valley. In 2024 MRGCD paid individual farmers $700 per eligible acre enrolled in the program. In exchange, farmers agree not to irrigate (fallow) enrolled acreage for the duration of the lease, allowing conserved water to accumulate in outfalls (channels within acequia systems which return unused irrigation water to the river, primarily to prevent flooding). During periods of drought or low flows in the Rio Grande, MRGCD releases leased water at strategic locations (outfalls), supplementing flows in the shallowest reaches of the river channel. Since the start of the EWLP in 2020, MRGCD has leased over 18,000 total acre-feet of water to support local water needs for agriculture, endangered species, and the interstate compact.
  • Silvery Minnow Refugia: In addition to supplementing flows in the main river channel, conserved water from the EWLP provides refugia for silvery minnow during the height of summer and dry periods. In outfalls along the Rio Grande, the water is significantly cooler than water in the shallow river channel. Monitoring results indicate silvery minnows are utilizing the outfalls as refuge from high water temperatures and low water quality in the river during hot, dry periods.
  • Interstate Compact Compliance: In addition to providing endangered species benefits, leased water from the EWLP helps supplement water supply in the Rio Grande for downstream water users, helping fulfill water delivery demands for the Rio Grande Compact.
  • On-Farm Improvements: Through the conservation program, MRGCD also makes small-scale improvements to irrigation infrastructure and farmlands throughout the valley. Improvement projects range from enhanced water delivery mechanisms such as farm delivery pads and turnouts, construction of irrigation pipelines, and technical assistance such as field surveys and infrastructure audits. MRGCD has guided operational improvements on dozens of farms and is pursuing infrastructure improvements where necessary.

Lessons Learned

Constructed gates by a body of water
Image Details

Initially, irrigators in the valley were cautious about the EWLP and the conservation program. Many were worried the district was attempting to “buy and dry” the valley by buying out their water rights for commercial use, disrupting traditional community agriculture. MRGCD found that cooperation and transparency with both enrolled and unenrolled water users was crucial for the success of the project, and for building positive relationships with the community. Cooperation with unenrolled water users helped MRGCD build trust with those who were still hesitant about the EWLP, and reassure the community that the program would remain voluntary. Through public education, outreach, and maintaining the voluntary status of the water leasing program, MRGCD has earned the trust of local water users. In fact, the EWLP has supported the valley’s agricultural community by providing an alternative financial option for farmers impacted by water shortage and drought who would otherwise have to let their crops and pastures dry out for lack of water. Acre feet of water leased has increased from 126 acre feet since the start of the program in 2020, to 5,942 acre feet in 2024. 

Next Steps

  • Continue developing the various conservation program initiatives to balance competing water demands for local agriculture, endangered species, and Rio Grande Compact obligations.
  • Take steps to optimize water storage infrastructure in the basin to supplement flows in the middle Rio Grande throughout the year. 

Funding Partners

Resources

Contacts

CART Lead Author

  • Alexes Albillar, Gila River Basin Native Fishes Conservation Intern, U.S. Fish and Wildlife Service: apalbillar@gmail.com

Suggested Citation

Albillar, A., P. (2025). “Environmental Water Leasing and Endangered Species Conservation in the Middle Rio Grande Valley”. CART. Retrieved from https://www.fws.gov/project/water-leasing-middle-rio-grande-valley.

Library

Water Leasing in the Middle Rio Grande Valley Handout
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Water Leasing in the Middle Rio Grande Valley Handout

Environmental Water Leasing and Endangered Species Conservation in the Middle Rio Grande Valley CART Case Study Handout

In the face of drought and changing hydrologic conditions in the river valley, the Middle Rio Grande Conservancy District has implemented a wide-ranging conservation...

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