00:00California faces a looming water problem. There is a danger, either that the Colorado River will
00:06simply dry up or flow in such low amounts that California can't draw on it in a meaningful way,
00:11which could have severe implications for hydroelectric power, for water storage, and for
00:15usage, or the federal government will have to step in and impose restrictions. The Colorado River,
00:21which runs through several states on its way to the Sea of Cortez in Mexico, is an important source
00:28of water for those seven states, and California is one of them. Historically, the Colorado River has
00:35fed agricultural production in places like the Imperial Valley. There is a deal in place to share
00:41the water among these seven states, and the seven states are divided into two groups. One is called
00:48the Upper Basin, which is further toward the source of the Colorado River, and the other is the Lower
00:53Basin, which is more toward the mouth of the Colorado River, talking about the southwestern
00:59states. The Lower Basin is administered by the federal government, and the federal government
01:04has warned that because of declining water levels in the Colorado River, which has resulted in declining
01:09levels in Lake Powell and Lake Mead, two very important reservoirs, the federal government will
01:14step in and impose water restrictions on the Lower Basin states unless the seven states can come up
01:22with a new water-sharing agreement after the current agreement expires this year. But thus far, there is
01:28no agreement because the states can't decide who should cut more in order to preserve the Colorado River's flow.