The Utah Division of Water Rights is reviewing an application to repurpose a Green River–basin water right for municipal use that could draw from the Colorado River near Cisco, where a new residential community is proposed off Interstate 70 about an hour from Moab.
The San Juan Water Conservancy District filed the change application July 1, requesting permission to convert Water Right 91-5233 from power generation — originally allocated for a nuclear power plant that was never built — to municipal use.
The filing would allow diversion of up to 24,000 acre-feet per year from the Colorado River near Cisco, within the Green River basin, and associated tributaries, serving Green River City, other areas within the district’s service area, and a proposed 750-lot development in Cisco.
State records list the San Juan Water Conservancy District as the right’s owner. Havilah Homes Inc., which has proposed the Cisco development, and Green River City are listed as interested parties.
The division did not respond to a request for comment from The Times-Independent and has not said when it will decide on the application.
Lawrence Hilton, trustee and developer for Havilah Homes, said he expects only about 1,000 acre-feet annually would be used for Cisco’s portion — a fraction of the total right — and that at least 2,000 acre-feet would be left in the Green River for environmental or in-stream purposes. That estimate is not outlined in the change application.
He said the intent is to reuse idle water for municipal supply rather than heavy industry, describing a concept for a walkable community that would restore Cisco as a livable settlement.
“Our objective is to transform Cisco from Ghost Town to Our Town: a family-friendly, walkable community that honors its local and national heritage, celebrates its surrounding natural beauty, and embraces its vivid night sky,” Hilton told The Times-Independent.
Even if the water-right change is approved, the decision would authorize only a change in use and diversion points, not construction of infrastructure or homes.
To move forward, the project would still need Grand County zoning and subdivision approvals, environmental review, federal right-of-way permits for any new pipelines or diversions and other required regulatory reviews.
A water right with a long history
The water right dates to 1958, stemming from allocations made after passage of the Colorado River Storage Project Act, which established Flaming Gorge Dam and other reservoirs to store Utah’s share of the Colorado River. Initially designated for power development that never occurred, the right was later leased in 2010 to Blue Castle Holdings, which proposed a 3,000-megawatt nuclear power plant near Green River.
The state engineer approved that project in 2013, but it drew protests and litigation and was never built. The lease expired in 2021, leaving the allocation unused.
The district’s new filing would repurpose the same right for municipal use, supplying both Green River and Havilah Homes’ proposed community near Cisco. The district says in its filing that the planned municipal uses would consume far less water than the former power-plant proposal and result in greater return flow to the Colorado River system.
Hilton said he has not yet received any update from the division but expects to hear back by the end of the year.
Protests question feasibility and transparency
The proposal drew two formal protests and prompted a public hearing Oct. 14 in Green River, where opponents questioned the project’s feasibility and broader implications.
John Weisheit, Colorado Riverkeeper and co-founder and executive director of Living Rivers, argued that the San Juan Water Conservancy District’s filing continues “a 70-year-old story” of speculative water marketing in an already over-allocated Colorado River Basin.
He said the district let the right lapse around 2000, weakening its standing among other Green River claims. Weisheit also questioned whether the state should reauthorize water once intended for power generation to serve a private development while the Bureau of Reclamation and basin states are still negotiating new post-2026 Colorado River management guidelines that will determine future water-use limits across the region.
He added that developing new diversions on saline Mancos Shale terrain near Cisco could create costly engineering and wastewater challenges, calling the plan “speculative” and likely infeasible without major new infrastructure.
Cisco resident Kara Bard, one of the community’s few year-round residents, protested that the change application “makes no mention whatsoever of the existing population of Cisco” and prioritizes a proposed subdivision “over current human needs.” She also raised concerns about transparency, noting the lack of public information about financial terms and infrastructure needed to use the water.
Developer says plan would revive Cisco, address housing need
Hilton said Havilah Homes plans to restore Cisco’s historic townsite through a new subdivision with housing and infrastructure inspired by its early character. He said the goal is to revive a community that once supported several hundred residents before Interstate 70 bypassed the area.
He added Havilah hopes to rebuild the town’s long-defunct water system with new, environmentally compliant infrastructure and make the supply available to all residents in the service area.
Preliminary engineering is underway for a potential new pipeline along an existing power-line easement rather than the century-old route, which Hilton said would shorten the delivery path and reduce disturbance along the county road. He said informal discussions have occurred at the county level, and that the company plans to coordinate with state and county regulators once initial engineering is complete and the water-right change is secured, should that occur.
He said the company plans to follow all NEPA requirements and does not intend to build infrastructure that interferes with river recreation.
“We anticipate initially developing and operating a municipal water-supply system made available to all residents on customary and reasonable terms,” Hilton said, adding that the company aims to “restore a historic settlement in a way that is sustainable and respectful of the landscape.”
Next steps
If the change application is denied, the district could appeal or revise its proposal. If approved, the decision would change the right’s use and diversion points, but any Cisco development would still require multiple county, state and federal approvals.
Weisheit said the case reflects a broader tension between local growth ambitions and the limits of a shrinking river, warning that reviving unused rights for new developments could add pressure to an already over-allocated system.
“There’s just not enough water to keep doing this,” he said.
This story was first published by The Times-Independent.