Colorado to evaluate blockchain for water management

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You may have heard of “blockchain” in terms of crypto currency.

Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system.  The technology is basically a digital ledger of transactions that is duplicated and distributed across an entire network of computer systems on the blockchain.

Colorado has passed HB 1268, “Study Emerging Technologies For Water ManagementOpens in a new tab.,” which was signed into law by Governor Jared Polis on June 18.  The bill directs two state-run universities and the Colorado Water Institute to research the use of blockchain and other emerging technologies for water management.  In the bill, the legislature “…finds and determines that emerging new and improved technologies may offer significant benefits to Colorado water users and managers by: (a) Improving the monitoring, management, conservation, and allocation of both surface water and groundwater; (b) Reducing inefficiency and waste in the process of recycling, reclaiming, or disposing of produced water and wastewater; and (c) Allowing parties to water rights transactions to have more confidence in the data on which those transactions are based.”

According to Ledger InsightsOpens in a new tab., blockchain has been used in CaliforniaOpens in a new tab. and AustraliaOpens in a new tab. for water management, particularly for trading water rights in regions with scarce water resources.


Since 1995, Deborah has owned and operated LegalTech LLC with a focus on water rights. Before moving to Arizona in 1986, she worked as a quality control analyst for Honeywell and in commercial real estate, both in Texas. She learned about Arizona's water rights from the late and great attorney Michael Brophy of Ryley, Carlock & Applewhite. Her side interests are writing (and reading), Wordpress programming and much more.

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August 6, 2021 11:01 pm
I think it’s inevitable that water management will be digitized, and with Blockchain ledger system, it would keep accurate records you would think. The monitoring of water management could be improved as everything would be on the chain. As drought conditions get worse, a more efficient tracking system could save water.

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