severely during low flow years. This dewatering has caused adverse impacts on the fisheries, 

 other aquatic life and the recreational use of the streams. 



Because "first in time is first in right" in Montana, as it is in many western states, the removal of 

 water has had priority over keeping it in streams. In recent times, however, recreation, 

 particularly fishing, has attained increased social and economic importance. There is increasing 

 emphasis on finding ways to maintain and improve streamflows to provide fisheries that will 

 satisfy the angling public as well as improve environmental conditions for other aquatic and 

 terrestrial life that depend on the stream corridor. But, because many streams are already over 

 ^propriated, flows can only be improved by putting some of the already appropriated water back 

 into the stream. 



Why is leasing important? Because good habitat produces good fish populations. Fish habitat in 

 streams consists ofthree basic components: (1) An unaltered physical chaimel, (2) an adequate 

 quantity of water to fill the physical channel, and (3) good water quality. The higher the quality 

 of these components, the more fish the stream can produce. Instream flow is the water quantity 

 component of stream habitat. One means to provide that component in dewatered streams is to 

 lease existing diversionary water rights and temporarily transfer the water back to the stream, 

 thereby making previously diverted water available to improve fish habitat. 



LEGISLATIVE HISTORY 



The Water Leasing Study was established in 1989 by the 51st Montana Legislature through 

 passage of HB 707. It was probably the most controversial natural resource issue that came 

 before that body. The issue arose primarily as a result of the 1988 drought's impact on stream 

 fisheries. The bill was supported by the environmental and recreational groups and opposed by 

 agriculture. It was, at one point, rejected by the legislature but was later revived and, through 

 amendments, approved in the closing days of the session. It was signed into law in May, 

 1989. 



A sample of newspaper headlines before and during the 1989 legislative session provides a 

 glimpse of the debate that took place prior to the bill's approval: 



"Water Fight: Irrigators, environmentalists see battle in "89 legislamre." Great Falls Tribune, Sept. 12, 1988. 



(Then Governor) "Stephens supports water leasing bill." Ravalli Republic (Hamilton), February 15, 1989. 



"Debate boils over proposed water bill: Ranchers and recreationists disagree about the bill's intent and power." 

 Ravalli Republican, February 20, 1989. 



"Water rights leasing plan endorsed" (by the House). Independent Record (Helena), February 22, 1989. 



Water leasing bills concerns stockgrowers" (sic). Montana Stockgrower. March, 1989. 



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