Moab groups challenge resort project over water rights

• Lawsuit claims key water rights tied to the Kane Creek project were forfeited due to long-term non-use.
• The proposed 586-unit development lies in a sensitive riparian area along the Colorado River.
• Plaintiffs allege illegal water diversion and zoning violations are already occurring.
• The complaint alleges that the project could impact local ecosystems, archaeological sites, and recreational businesses.

Thursday, July 3, 2025 –– Two Moab-based environmental organizations filed a complaint on June 27 in Utah’s Seventh Judicial District Court, alleging that developers of the proposed Echo Canyon resort near Kane Creek are illegally relying on forfeited or abandoned water rights to push forward a massive housing and resort development.

The lawsuit was filed by Friends of the Abajos, doing business as Kane Creek Development Watch, and the nonprofit Living Rivers. The plaintiffs claim that water rights central to the project, some of which date back to the 1950s, have not been lawfully used in decades, rendering them void under Utah law. They are asking the court to halt further development and are seeking enforcement from the Utah State Engineer.

According to the complaint, the 586-unit mixed-use project is planned for approximately 176 acres of floodplain and upland benchland just outside Moab. The area is home to riparian habitat, endangered species, and ancient petroglyphs. Plaintiffs say that the developers, operating under various corporate entities, have allegedly started excavation and fill operations using unapproved wells and oversized rock material, potentially violating both water law and local floodplain ordinances.

The plaintiffs argue that the developers’ recent actions, including using a capped well without authorization and attempting to incorporate as a “preliminary municipality” under a new Utah statute, demonstrate an intent to circumvent oversight. They also raise concerns about impacts to nearby public lands, recreation businesses, and private property owners along Kane Creek Road, the only access route to the site.

The court filing requests judicial review of the water rights and immediate cessation of development activity pending resolution. The case adds to growing tensions in Grand County over the future of water, land use, and growth near the Colorado River corridor.

Image:

Rock formation at the Kane Creek Campground in Moab, Utah.  May, 2018 by Ben P L from Provo.  Licensed under the Creative Commons Attribution-Share Alike 2.0 Generic license.

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