Water is the single most complicated thing about Colorado land. Under Colorado's prior appropriation doctrine ("first in time, first in right") codified throughout C.R.S. Title 37, water rights are a separate property interest from the land itself, can be severed, sold, leased, changed, and transferred — and are governed by specialized water courts in each of the state's 7 water divisions. This guide explains how water rights actually work, what makes them valuable, and how we buy Colorado land with adjudicated water rights, exempt wells, or nothing at all. Call 970-478-1022 and we will walk through your decree.
Colorado is one of only a handful of pure prior appropriation states. Unlike riparian states where owning land gives you rights to adjacent water, Colorado requires a formal adjudication to establish a water right. The governing framework is in C.R.S. Title 37, Articles 90-92 (surface water) and Article 90 (ground water).
A decreed water right is adjudicated by a Colorado water court under C.R.S. § 37-92-302. It has a priority date, a decreed amount, a point of diversion, and a type of use. The older the priority date, the more senior the right.
An exempt well is a small-capacity domestic well permitted under C.R.S. § 37-92-602 without court adjudication. Most rural Colorado homesites have an exempt well permit issued by the State Engineer's office. These are limited to household use, typically one single-family dwelling, and very limited irrigation.
In many Colorado basins (especially the South Platte and Arkansas), new wells must be covered by an augmentation plan under C.R.S. § 37-92-302(1)(a) that replaces the depletions caused by the well to senior downstream users. Augmentation plan water is a separate, valuable commodity.
Colorado does not allow you to file for water rights you don't plan to actually use. Under C.R.S. § 37-92-103(3), a conditional water right requires an intent and a concrete plan. This limits speculative hoarding.
If you want to change a decreed irrigation right to municipal use, you must file a change case in water court under C.R.S. § 37-92-305. These cases take 2-5 years and routinely cost $50,000-$500,000 in legal and engineering fees. Changing the use without court approval is an enforcement violation.
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Conejos County, 40 acres, 1887 decreed irrigation right. A genuine senior pre-compact right in the Rio Grande basin. The water was worth substantially more than the dirt. We connected the seller with a water broker who placed the water with a downstream ag user, then we bought the dry land.
Elbert County, 35 acres, exempt household well. Owner thought they had "water rights" — actually just a Permit 26405-F type exempt well good for one house. We bought the parcel at dryland prices because the well doesn't add much transferable value.
Saguache County, 160 acres, abandoned augmentation plan. The previous owner filed a change case in Water Division 3 and let it lapse. We bought as-is, no water rights, priced accordingly.
Related: agricultural land, raw land, mountain land.
Serving all 64 counties across the state
Get answers to common questions about selling your land
No. Water rights are separate property and must be specifically conveyed in the deed. Under C.R.S. § 38-30-102 proper description of the decree or well permit is standard practice. A generic "appurtenances" clause is not enough for decreed rights.
Colorado's water law doctrine: "first in time, first in right." The oldest priority date wins in a shortage. A 1887 ditch right is senior to a 1952 right on the same stream. This is codified in C.R.S. § 37-92-102 and throughout Title 37.
A small-capacity well permitted by the State Engineer under C.R.S. § 37-92-602 without water court adjudication. Typically limited to one household, limited irrigation (often just one acre of garden), and limited animal watering. They don't carry significant transferable value.
A water court-approved plan under C.R.S. § 37-92-302(1)(a) that replaces out-of-priority depletions so your well or diversion doesn't harm senior users. Required for most new wells in over-appropriated basins. These are valuable and transferable.
Yes. Water rights are a separate property interest and can be severed. Many Colorado owners sell the water and keep the dry land (or vice versa). A change of use case in water court may be required if the new use differs.
Colorado has 7 water divisions, each with a designated water judge. Water court handles applications for new rights, changes of use, augmentation plans, and abandonment. Cases are published in a monthly resume and subject to opposition. Timelines are 1-5+ years.
Pull the deed chain at the county recorder and cross-reference with the Colorado Division of Water Resources database at dwr.colorado.gov. Decreed rights will have a case number and priority date. Exempt wells will have a permit number. If it isn't in the records, it doesn't exist.
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