From The Pueblo Chieftain (Chris Woodka):
Pace described his legislation as a carrot-and-stick approach that allows those who are transferring water to reach agreements with conservancy districts prior to going to water court in transfers between water divisions only. If no agreements can be reached, the legislation would give judges more latitude in attaching mitigation requirements to transfers. “The ultimate goal is to build a statute that leaves rural communities in existence long after we’ve gone and the water has been moved,” Pace said…
The legislation would not spell out mitigation, but would use language already existing in the 1937 law that established conservancy districts in Colorado, Pace explained. In the Aurora purchase of most of the Rocky Ford Ditch, for instance, contributions were made to the local school district to help offset the economic impacts. An area on the Upper Arkansas River or the West Slope might want compensatory storage to make up for reduced flows, Pace said.
More transmountain/transbasin diversion coverage here.