U.S. proposes major Colorado River water reductions for Arizona, California, and Nevada

Plan calls for shortages of up to 3 million acre-feet per year across Arizona, California and Nevada

After more than three years of negotiations, the seven basin states failed to reach agreement on new rules

Arizona rejects the proposal as unacceptable

July 31 (Reuters) — The federal government unveiled a new plan Friday that would sharply cut water deliveries to Arizona, California and Nevada during dry periods, as officials try to manage the drought-hit Colorado River.

Legal challenges from states could follow the federal move, potentially extending uncertainty for a river that supplies water to 1 in 10 Americans, irrigates farmland that produces 15% of U.S. food, and generates electricity for 6 million people across seven states.