U.S. Supreme Court approves Rio Grande Compact settlement

August 14, 2026

The U.S. Supreme Court approved a settlement in May, resolving Texas v. New Mexico and Colorado, a case that had been in litigation for more than a decade.

The dispute centered on claims that New Mexico had been overusing groundwater in ways that reduced surface water deliveries owed to Texas under the Rio Grande Compact, with the case focused on water management below Elephant Butte Reservoir in the Lower Rio Grande Basin. Under the terms of the settlement, New Mexico, Texas, Colorado, and the United States agreed to a new water accounting framework that allows for continued groundwater use in both New Mexico and Texas within a clear and enforceable system.

New Mexico officials said the state will continue efforts already underway to improve water management in the Lower Rio Grande, including strengthening data and monitoring and planning for long-term aquifer sustainability in partnership with local water users.

State Engineer Elizabeth Anderson said the agreement gives New Mexico the tools and flexibility needed to meet its legal obligations while continuing to support agriculture and responsible water management across the region.

The resolution comes as water rights remain a persistent flashpoint across the West, where drought conditions and rising demand have repeatedly tested the legal frameworks governing shared water resources between states. These cases often take years to reach their conclusion and can often leave water well contractors and groundwater managers in a state of confusion over which regulations are being enforced.

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