"Water is critical to the economic future of the state," said the 51-year-old Democrat, backed by the slow-moving waters of City Creek. "How we address our Utah water issues will really define the future of how we live.

"We still do not have a sufficiently aggressive state water conservation plan."

While careful not to criticize current efforts by the state to conserve, Matheson said goals for reduction of water use should be higher.

Currently, Utah's "Slow the Flow" program calls for a 25 percent reduction in water use by 2050. The Jordan Valley Water Conservancy District has a 40 percent goal, said Matheson, singling out the state's largest water district.

"Conservation is actually the easiest and least expensive way to build [water] supply, and users are definitely getting the message - but we have a long way to go," Matheson said. "I think the governor's leadership on this issue is absolutely critical."

Jason Chaffetz, campaign manager for Republican gubernatorial candidate Jon Huntsman Jr., bristled at Matheson's plan to potentially increase Utah's water conservation goal. The Huntsman campaign issued a water policy statement in April at a St. George news conference, according to Chaffetz.

"He's had a 'peek' from us since April," Chaffetz said, calling Matheson's announcement an unfair campaign tactic.

"We've taken a leadership position and people can't be fooled by a July press conference. Mr. Matheson is playing catchup on this," he added.

While similar, the Matheson and Huntsman water plans differ on some drought-response actions and funding management of some water projects. Currently, one-sixteenth of the state's sales tax goes toward water projects.

While Matheson said he would retain the one-sixteenth allocation, he would be open to an increase. Chaffetz said Huntsman also would keep the sales tax and would remove a cap on money local agencies receive from that funding source.

"We haven't capped our population, so we shouldn't be capping money allocated from the one-sixteenth sales tax," Chaffetz said.

But both candidates said local and state governments could not rely upon funding from sales tax to support future state water projects.

Instead, water providers would have to take action.

"[Our] state water plan is not going to become a statewide water plan unless it's the product of a grass-roots effort," Matheson said, hinting at the need for a conservation-friendly fee structure from water providers. Also listed in that plan is a step-by-step drought-response plan. Similar to Huntsman, Matheson is pushing to explore a temporary lease of Utah's unused share of Colorado River water to lower-basin states.

Notably different from Huntsman's posted water plan is Matheson's proposal to develop a "water bank," where farmers and other owners of water rights can lease their claims.

"I think it's high time we look at it because it's based on sound market principles," Matheson said.

"We ought to be doing the planning today for a more comprehensive drought-response plan."

nwarburton@sltrib.com

Matheson's Water Plan:

* Implement a "voluntary water bank" where water rights can be leased to the state and other interested parties.

* Work with the water conservation committee to increase goals for reduction of water use.

* Encourage local water providers to "explore" fee structures based on water usage.

* Study a lease option for unused portions of Utah's allocation of water from the Colorado River.

Huntsman's Water Plan:

* Develop a recycling program for reusable water.

* Implement and encourage more water conservation programs with pamphlets about xeriscaping and use of Utah's native plants.

* Remove a cap on one-sixteenth of Utah's sales tax allocated for water projects.

* Explore a lease option for unused portions of Utah's allocation of water from the Colorado River.