Pueblo West targets 130 acre-feet of water savings through strategic lot rezoning

Pueblo West targets 130 acre-feet of water savings through strategic lot rezoningThe Colorado district is considering removing water dedications from commercially unviable plots to free up resources for future development and cash-in-lieu revenue.

Economic Support Specialist Marcos Reyes presented a three-zone plan to free up 129.42 acre-feet of allocated water.

Zone 1 proposes rezoning 72 multi-family lots to single-family, saving an estimated 47.1 acre-feet.

Zones 2 and 3 involve reallocating 82.32 acre-feet away from undeveloped, commercially nonviable B-4 commercial lots.

The District's Utilities Department supports the plan, which could generate revenue through cash-in-lieu payments.

The Board of Directors requested further details on legal tracking mechanisms before voting on a formal resolution.

Pueblo West Metropolitan District in Colorado is evaluating a strategic water resource reallocation proposal designed to free up 129.42 acre-feet of water. Presented at the July 27, 2026, Board of Directors meeting, the plan targets undeveloped properties across three zones by altering zoning designations and removing existing water allocations. Economic Support Specialist Marcos Reyes outlined the strategy to the board. Zone 1 contains 35 R-4 lots and 37 R-5 lots, which are currently allocated a combined 75.9 acre-feet of water. By rezoning these properties to R-1 single-family residential, the required water allocation would drop to 0.4 acre-feet per lot, based on an estimated 11,000 gallons of usage per month. This rezoning alone would save 47.1 acre-feet of water. Zones 2 and 3 consist of undeveloped B-4 commercial lots that lack adequate infrastructure. Zone 2 includes 24 lots requiring extensive sewer line extensions, currently holding 40.32 acre-feet of water allocations. Zone 3 comprises 25 small, 50-foot lots holding 42 acre-feet. Reyes proposed reducing the water allocations on these commercially "nonviable" lots to zero. Director of Utilities Kevin Niles expressed support for the plan, noting it would provide the utility with more resources for cash-in-lieu programs and future viable developments. Reyes suggested the reallocation could be enacted via a board resolution, which would allow the District to reverse the action if a developer later acquired multiple contiguous lots and installed the necessary infrastructure. Board members expressed general support for the demand management strategy but raised questions regarding the long-term permanency of the changes and the mechanics of tracking reallocated water. District Manager Christian J. Heyn cautioned that the board must ensure the reallocation is properly recorded with property documents so that future buyers are aware the lots lack water rights. Staff will refine the legal and tracking mechanisms and return to the board with a formal resolution at a future meeting.