Nevada has launched a voluntary water rights buyback program to address the long-standing issue of groundwater over-pumping. Approved in June, the initiative allows the state to purchase and permanently retire groundwater rights in over-allocated basins. It’s a major step toward restoring balance in areas where groundwater use is exceeding sustainable levels. However, the program still faces a significant barrier: it lacks funding.
Two bipartisan bills, Assembly Bill 104 and Senate Bill 36, created the buyback framework. These laws authorize the state engineer to accept grants and donations and open the door to future legislative appropriations. Despite the policy breakthrough, Nevada didn’t allocate money to the program this session. That omission comes as the state grapples with a $191 million projected deficit over the next two years.
The Nature Conservancy reports that more than half of the state’s 256 hydrographic basins are over-appropriated. In these areas, the legal rights to pump water far exceed what nature can supply. This imbalance is causing long-term aquifer decline, harming both ecosystems and rural communities. Supporters say a funded buyback program would offer a rare win-win: it compensates willing sellers while helping the state manage water more sustainably.
Some regions have already tested buyback programs with success. In Diamond Valley, a federally funded pilot helped reduce groundwater use by about one-third of the basin’s perennial yield. Stakeholders decided on what to do with their rights voluntarily, easing pressure on the system without resorting to legal battles.
For now, Nevada has the legal tools but lacks the necessary funding. Lawmakers and water managers hope the next session will bring the investment needed to make the program a reality. Without funding, the state’s groundwater crisis will continue, and opportunities for voluntary solutions may slip away.
