The waters of the Colorado River are divided among seven states according to a complex "Law of the River" drawn from interstate compacts, international treaties, statutes, and regula tions. The Law of the River creates certain priorities among the states and the Republic of Mexico, and in the event of a severe sus tained drought, the Law of the River dictates the distribution of water and operation of the elaborate reservoir system. Earlier work indicated that there is remarkable resilience in the system for established uses of water in the Lower Basin of the Colorado River. This work shows, based on an application of the Law of the River using computer modeling of operations of facilities on the Colorado River, that there may be serious environmental consequences and related legal restraints on how the water is used in times of short age and that the existing legal and institutional framework govern ing the Colorado River does not adequately address all the issues that would be raised in a severe sustained drought. Several possi ble legal options for dealing with drought in the context of the Law of the River are identified. (KEY TERMS: social and political; water law; water policy/regulation/decisionmaking; water resources planning; watershed manage ment.)

The USA's 20th-century experience with major subsidized water development left a plethora of problems. Another generation now struggles with how to correct them. Today there is consensus among experts that water policy should be the result of broad public participation and should consider the social, economic and environmental effects of water use and development. Yet, formal institutions in the USA have been slow to incorporate innovations reflecting this consensus. The European Community's (EC's) Water Framework Directive and Spanish water law, however, appear to embody a progressive approach to water policy. Criticisms of Spain's proposed Ebro River transfers cast doubt on whether they would conform to Spanish or EC policy.

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