Nevada will face another year of reduced Colorado River water allocations as prolonged drought conditions persist across the West, federal officials announced Friday.
The Bureau of Reclamation's August 2025 24-Month Study indicates Lake Mead will remain in a "Level 1 Shortage Condition," with water levels projected at 1,055.88 feet — a full 20 feet below the threshold that triggers shortage declarations. This shortfall will impose significant water reductions across the Southwest.
Nevada will see its allocation cut by 21,000 acre-feet, representing a 7% reduction from its normal share. An acre-foot of water equals 320,000 gallons.
The cuts hit Arizona hardest, with an 18% reduction requiring the state to forfeit 512,000 acre-feet of its annual river allocation. Mexico will also reduce its usage by 80,000 acre-feet, equivalent to 5% of its typical annual share.
"This underscores the importance of immediate action to secure the future of the Colorado River," Acting Commissioner David Palumbo said in a statement. "We must develop new, sustainable operating guidelines that are robust enough to withstand ongoing drought and poor runoff conditions to ensure water security for more than 40 million people who rely on this vital resource."
The West is mired in a two-decade drought that is leaving less water flowing through the Colorado and its tributaries. The result is depleted reservoirs that store the water that allows the West to thrive.
Scorching temperatures and less snowmelt in the spring have reduced the amount of water flowing from the Rocky Mountains, where the river originates before it snakes 1,450 miles southwest and into the Gulf of California. Some 40 million people from Denver to Mexico, including many farmers, depend on the Colorado for water.
Lake Mead is projected to reach an elevation of 1,055.88 feet by January 2026, sitting 20 feet below the threshold that triggers shortage conditions. The reservoir, which serves as a critical water source for Nevada, Arizona, California, and parts of Mexico, has been operating under shortage conditions as drought has persisted across the region.
Nevada is never in jeopardy of using its allotment because of aggressive conservation efforts and recycling. Water used indoors — like when showering — is recycled back to Lake Mead.
Lake Powell, the system's other major reservoir, is expected to reach 3,538.47 feet on Jan. 1, 2026 — approximately 162 feet below its full capacity but still 48 feet above the minimum level needed for power generation. The reservoir will release 7.48 million acre-feet during the 2026 water year, though that amount could be reduced if conditions worsen.
The crisis takes on added urgency because the agreements governing Colorado River operations are set to expire at the end of 2026. The 2007 Interim Guidelines, 2019 Drought Contingency Plans, and international water-sharing agreements with Mexico will all need to be replaced.
"As the basin prepares for the transition to post-2026 operating guidelines, the urgency for the seven Colorado River Basin states to reach a consensus agreement has never been clearer," said Scott Cameron, the acting assistant secretary for water and science. "We cannot afford to delay."
Cameron has set an aggressive timeline for the seven basin states — Colorado, Wyoming, Utah, New Mexico, Arizona, Nevada, and California — to reach agreement on new operating rules. The states must submit preliminary agreement details by mid-November and finalize their proposal by mid-February 2026, with federal officials hoping to reach a final decision by next summer.
Federal officials acknowledge that current emergency measures will not be sufficient to address the long-term challenges facing the river system. Short-term tools approved last year include conservation of 3 million acre-feet or more in the Lower Basin and potential additional reductions in releases from Lake Powell.
"These short-term tools will only help us for so long," Cameron said. "The next set of guidelines need to be in place."
The original 1922 Colorado River Compact was calculated based on an amount of water that doesn't exist in today's climate. That leaves the Upper Basin states of New Mexico, Colorado, Wyoming and Utah to share far less water after the required amount is sent to the “Lower Basin” states of Nevada, Arizona and California. Lots of water is also lost to evaporation and leaky infrastructure.
The Department of the Interior and Bureau of Reclamation continue to meet regularly with basin states and Tribal Nations to develop the post-2026 operating guidelines, with the goal of ensuring long-term water security for the millions of people who depend on the Colorado River system.