The Colorado River Compact is a 1922 agreement among seven U.S. states in the basin of the Colorado River in the American Southwest governing the allocation of the water rights to the river's water among the parties of the interstate compact. The agreement was signed at a meeting at Bishop's Lodge, near Santa Fe, New Mexico, by representatives of the seven states the Colorado river and its tributaries pass through on the way to Mexico.
The Colorado River is managed and operated under numerous compacts, federal laws, court decisions and decrees, contracts, and regulatory guidelines collectively known as "The Law of the River."
The compact divides the river basin into two areas, the Upper Division (comprising Colorado, New Mexico, Utah and Wyoming) and the Lower Division (Nevada, Arizona and California). The compact requires the Upper Basin states not to deplete the flow of the river below 7,500,000 acre feet (9.3 km3) during any period of ten consecutive years. Based on rainfall patterns observed in the years before the treaty's signing in 1922, the amount specified in the compact was assumed to allow a roughly equal division of water between the two regions. The states within each basin were required to divide their 7,500,000-acre (30,000 km2) foot per year (289 m³/s) share allotment among themselves. The compact enabled the widespread irrigation of the Southwest, as well as the subsequent development of state and federal water works projects under the United States Bureau of Reclamation. Such projects included the Hoover Dam and Lake Powell.