Nevada Funds Groundwater Rights Buybacks to Ease Water Stress
Conserve Nevada awarded a $1.8 million grant to the Humboldt River Basin Water Authority to support a voluntary groundwater rights retirement program. The initiative, created by Governor Joe Lombardo, pays water users to relinquish rights to reduce stress on Nevada’s over-pumped hydrographic basins.
Why is the Humboldt River Basin receiving this funding?
The grant targets a region where groundwater pumping affects surface water flows in the river. Jeff Fontaine, executive director of the water authority, stated that holders of decreed surface water rights often receive no water in some years because of declining availability.

The Humboldt River Basin spans Humboldt, Lander, Eureka, Elko, and Pershing counties. It is part of a broader state crisis where more than half of Nevada’s 256 hydrographic basins are over-appropriated, meaning legal pumping rights exceed the annual volume of water available in the ground.
How does the groundwater retirement program work?
Governor Joe Lombardo signed two bills last year establishing the statewide program. Under this system, Nevada officials pay water users to voluntarily give up their rights back to regulators.
Fontaine noted that previous pricing for these rights was $850 per acre-foot. An acre-foot consists of 325,851 gallons, which is roughly enough to cover a standard football field one foot deep.
A 2023 pilot program in Diamond Valley, a ranching community in Eureka County, demonstrated the program’s potential. Water managers estimated that retiring rights in that area could have reduced pumping by one-third of the basin’s perennial yield.
What happens next for Nevada’s water management?
The Humboldt River Basin Water Authority will use the $1.8 million grant to prove the concept of targeted buybacks. Fontaine stated that this voluntary approach is preferable to a curtailment order, which would remove the opportunity for paid retirement.

Funding remains a primary obstacle. Fontaine indicated that water rights retirement must compete for resources against improvements for public water systems.
Water managers may seek new revenue sources or larger funding pools to sustain the program long-term. This follows a period of instability in state leadership, including the December firing of former State Engineer Adam Sullivan, who had previously suggested the basin might need help through curtailment or rolling back junior water rights.
Frequently Asked Questions
What is an over-appropriated basin?
It is a basin where the total volume of water people have the legal right to pump is greater than the amount of water available in the ground each year.
Which counties are affected by the Humboldt River Basin Water Authority?
The authority is responsible for the river spanning Humboldt, Lander, Eureka, Elko, and Pershing counties.
How much was the previously established price for one acre-foot of water?
According to Jeff Fontaine, the price for the rights to one acre-foot of water came out to $850.
Do you believe voluntary buybacks are the most effective way to manage dwindling water resources?