"We're Not Running Out of Water. We're Running Out of Cheap Water."

Dwindling water levels across the Colorado River are forcing communities in the Southwest to expand conservation efforts and invest in new tools as drought conditions deepen. Here is a look at how federal plans for the critical river are shaping everyday life in this corner of the country.

U.S. Bureau of Reclamation Report Brings Water Conservation to the Forefront

Several cities in the southwestern U.S. are enacting strict rules about water usage, including limiting outdoor watering and investing in wastewater recycling practices and desalination efforts. The call to conserve water reached a fever pitch on Friday when the U.S. Bureau of Reclamation released its final environmental review detailing how it plans to manage the water in Lake Powell and Lake Mead when the current operating rules are phased out.

The new framework could mean that Nevada, Arizona, and California will need to reduce their water consumption by up to 3 million acre-feet from stores in the Colorado River every year through 2028. The precise cuts will be determined every other year according to the current conditions.

Although the proposal could translate to significant water restrictions, it does not go into detail about how much water that all municipalities should expect to lose. The city of Phoenix noted that it is still refining its operation guidelines for next year.

Approximately 40 million Americans rely on the Colorado River for their water supplies. The good news is that household water availability should remain stable. However, this will require that governments spend more and enact stricter conservation measures.

Arizona State University water law professor Rhett Larson said that the region is not running out of water. Instead, it is simply "running out of cheap water."

In addition to the millions of residents who depend on the Colorado River for their water, this basin also supplies the resource for 30 tribal nations, two states in Mexico, and approximately 5.5 million acres of farmland. In fact, USA Today reports that agricultural interests account for the highest degree of water usage in the region, with residential use only amounting to about 20% of the overall demand. Cuts to agricultural water supplies could significantly impact food production in the years to come, resulting in higher prices all across the nation.