- Bill proposes transfer of Crystal Reservoir to Ouray.
- Legislation would move 45 acres of federal land.
- City would assume cost and responsibility for repairs.
- Local leaders stress water supply, recreation, and fire safety.
Thursday, September 11, 2025 — Yesterday, Colorado Senators Michael Bennet and John Hickenlooper introduced legislation to transfer ownership of Crystal Reservoir 
and related infrastructure from the U.S. Forest Service to the City of Ouray. The proposal covers approximately 45 acres, including the Full Moon Dam and Full Moon Ditch.
Under the legislation, the City would receive the property at no cost but would take on responsibility for repairs, maintenance, and long-term operations. Development on the land would be prohibited, and all activities would remain subject to Colorado water law.
Not to Be Confused with Another Crystal Reservoir.
Crystal Reservoir on the Gunnison River, created in 1976, is the smallest of three reservoirs in the Curecanti National Recreation Area. Built by the U.S. Bureau of Reclamation as part of the Colorado River Storage Project’s Aspinall Unit, it is held back by the 323-foot Crystal Dam, west of Morrow Point Dam. Together with Blue Mesa and Morrow Point, the reservoir helps store water, generate hydroelectric power, and support downstream agricultural and municipal uses. Its location at the western end of the Aspinall Unit makes it the final impoundment before the Gunnison River enters the Black Canyon.
This reservoir is not the same as the smaller Crystal Reservoir near the City of Ouray, which is the subject of the proposed federal legislation. The Gunnison River reservoir is managed by the National Park Service and, although less developed than its sister reservoirs, offers hand-launched boating, hiking, and limited camping. Visitors can access it from Mesa Creek Trailhead or Crystal Creek Trailhead, with trails leading to shoreline routes and an overlook 1,800 feet above the water. The two reservoirs share a name but serve very different purposes: one is part of a federal hydroelectric and storage project, while the other is a local water supply and recreation site in the San Juan Mountains.
Federal and State Perspectives.
Senator Bennet described the reservoir as vital to the community’s water supply and hot springs, noting that the bill would allow the site to be refilled and reopened for future generations. Senator Hickenlooper emphasized the reservoir’s role in outdoor recreation and its importance in drought management and wildfire response.
Governor Jared Polis supported the measure, calling it a way to return management to the local community. Dan Gibbs, Executive Director of the Colorado Department of Natural Resources, said the transfer would strengthen long-term water security for Southwestern Colorado, an area facing increasing drought conditions.
Local Support and Historical Importance.
The proposal has drawn wide support from local officials. Ouray Mayor Ethan Funk highlighted the reservoir’s history as a recreation hub and water source. He described the project as a restoration of a community landmark. Ouray Commissioner Lynn Padgett stressed the need for swift action to repair and refill the reservoir, citing its role as a water supply, recreation site, and wildlife habitat.
Sheriff Justin Perry added that Crystal Reservoir plays a vital role in wildfire response. He referenced the recent Snowshed Fire, noting the challenges of securing water from other sources if the blaze had expanded.
Community members also emphasized the site’s cultural and scenic value. The reservoir, often called Crystal Lake, has been a popular recreation and tourist destination for more than 80 years. John Clark, Mayor of Ridgway, noted its importance as a backup water supply and outdoor recreation area, while Don Paulson of the Ouray County Historical Society warned of the impact on tourism if the reservoir remained empty.
Environmental and Recreation Considerations.
The reservoir supports several hiking trails, including Hayden Mountain and Mears, and provides habitat for wildlife. Former Ouray Trail Group President Karen Risch described the area as an alpine ecosystem unique to Colorado.
Bob Risch, former Mayor of Ouray, recalled earlier efforts to preserve the land and called it one of the region’s “crown jewels” for its ecological and recreational values.
Why the Transfer Is Needed.
The U.S. Forest Service drained the reservoir in January 2024, which left the City of Ouray, local hot springs, and downstream agricultural producers without an essential water supply. The loss also limited its role as a water source for aerial firefighting.
The proposed legislation is supported by local governments, nonprofits, water groups, and businesses, including the Colorado River District, Uncompahgre Watershed Partnership, Red Mountain Project, and several community organizations.
Reference Links:
Image:
The city of Ouray, Colorado, at sunset
, on October 28, 2022, by Tony Webster. Licensed under the Creative Commons Attribution 2.0 Generic license.
