Water delivery by Mexico to the Rio Grande, as required by the 1944 Water Sharing Treaty, is of extreme importance to the economy and development of Texas’ border region, specifically the Lower Rio Grande Valley.  Mexico’s 1992-2002 water debt to the United States at one time reached 1.5 million acre feet.  Through “quiet diplomacy”, a process established by Governor Perry, and direct negotiations with Mexico, the water debt was completely repaid by September 2005.  Compliance by Mexico increases water availability for Texas farmers and municipalities that rely on Rio Grande water from Amistad and Falcon international reservoirs to the Gulf of Mexico.

The Rio Grande basin has experienced unprecedented growth associated with the region’s expanding economy. As a result, availability of water for municipal, industrial and agricultural needs is a pressing issue for residents of the Rio Grande basin.

In 1944, Mexico and the United States entered into a treaty that called for equitable distribution of binational waters along the US/Mexico border from the Gulf of Mexico to California.  The treaty requires Mexico to deliver to the United States an annual minimum average amount of 350,000 acre-feet per year. The treaty allows for less-than-required deliveries when “extraordinary drought” conditions have affected the basin.  Unfortunately, the term is not defined in the treaty.  Compliance with the treaty is a federal responsibility vested in the International Boundary and Water Commission, an agency of the U.S. State Department.  Lack of treaty compliance results in a direct negative impact to Texas.  As an affected state, Texas was not previously allowed to participate in discussions regarding debt repayment.

Recognizing the importance of Texas’ participation in direct negotiations regarding lack of water, the following actions were implemented:

• Impact of the water debt was elevated to the highest levels of both Mexican and U.S. governments.
• Texas secured a seat in all government to government meetings regarding the water debt.
• Governor Perry raised the concerns of Texas water right holders in direct meetings with Mexican President Fox.
• Texas assisted in the development and implementation of various water delivery scenarios that resulted in complete repayment of waters owed by September 2005.
• Among the scenarios developed by Texas for debt repayment was an efficient utilization of Rio San Juan waters from Mexico, previously destined for 100% Mexico use, as a form of delivery of waters for Texas’ Lower Rio Grande valley users.
• Utilization of Rio San Juan waters assisted in the restoration of reserves at Amistad and Falcon reservoirs for future water needs as well as enhancement of environmental and tourism activities.

Annual meetings that included the state of Texas were agreed to by Mexico and the United States to discuss basin conditions and mitigate the establishment of a new water deficit.

The water debt attributed to 1992-2002, which at one time totaled 1.5 million acre-feet, was completely repaid by Mexico by September 2005.  Additionally, continued direct negotiations with Mexico ensured closure of the 2002 – 2007 treaty accounting cycle without a deficit and in full compliance – a first in 15 years.

Water debt repayment restored Texas’ reserves on the Rio Grande, which at one time during the period of non-compliance with the treaty by Mexico, reached a low of 19% (1998), severely impacting water availability. Texas farmers subsequently lost hundreds of millions of dollars.

In order to prevent future deficits, Texas requested that the term “extraordinary drought” as it is referenced in the 1944 treaty be defined by both countries.

Through NADBank funding and infrastructure improvements, an amount in excess of 55,000 acre-feet of water will be saved annually.