Oregon Legislature Approves Deschutes Water Bank Pilot Bill
FOR IMMEDIATE RELEASE
Media Contact:
Kate Fitzpatrick, Executive Director
Deschutes River Conservancy
kate@deschutesriver.org
541-382-4077 x118
Oregon Legislature Approves Deschutes Water Bank Pilot Bill
Caption: The Deschutes Water Bank will help meet needs of farms, cities and our local rivers and streams.
July 18, 2025, BEND, OR — The Oregon State Legislature has passed House Bill 3806, approving pilot water bank authorities in the Deschutes Basin. This legislation marks a significant step forward in helping Central Oregon expand more flexible and efficient water management to support farms, cities, and rivers alike.
Water is over-allocated in the Deschutes River Basin. Shortages to meet instream, agricultural, and municipal needs can range upwards of 300,000 acre-feet in a dry year (for reference, Wickiup Reservoir holds about 200,000 acre feet of water). Rivers and streams bear the brunt of shortages, as do farmers in Jefferson County with more ‘junior’ water rights.
What Is Water Banking?
Water banking is a process that allows unused water to be moved and used where it’s needed most. It’s a flexible tool that helps balance agricultural, environmental, and urban water needs.All transactions are voluntary, transparent, and governed by clear protections for water rights and the environment.
Examples of how a water bank works:
- Water Rights Holders/Irrigators who don’t need all their water in a given season can deposit it in the water bank and receive payment.
- Farmers can lease banked water to reduce fallowing and increase crop productivity.
- Cities and towns can access banked water to help meet growing demand.
- Rivers benefit from reserves of banked water specifically dedicated to improving instream flows and supporting overall river health.
What HB 3806 Does
Oregon’s current water laws make it difficult to share water among users in an efficient and coordinated way. HB 3806 addresses this by authorizing the Water Resources Commission to approve a Deschutes River water bank pilot program that will:
- Help coordinate and expand processes for short-term water transfers
- Protect water rights in the bank from forfeiture due to non-use (water rights must be used once every five years under Oregon water law)
- Ensure water rights users engaging in water conservation do not lose water rights
HB 3806 accomplishes this in a way that:
- Protects against speculation, waste, and harm to rivers and other water users
- Provides economic incentives while maintaining water rights security
- Establishes clear annual reporting requirements for transparency and accountability
- Includes additional oversight opportunity with tribal and state agency review and public comment
- Supports local priorities like agricultural viability, economic resilience, and river health
This pilot represents a locally driven, innovative approach to managing the region’s limited water supply more sustainably. The Deschutes River Conservancy will manage the water bank in coordination with irrigation and municipal partners. Bank activities will focus on mainstem middle and upper Deschutes River systems and can include irrigation districts and cities that use water from these sources
“We are excited to get to work with our partners to make it easier to get water to where it is most needed in the Deschutes,” said Kate Fitzpatrick, Executive Director of the Deschutes River Conservancy. “We hope this pilot bank can demonstrate how basin-specific flexibility under Oregon water law can help solve increasingly complex water problems.”
“This water bank provides another tool for North Unit Irrigation District to meet patron needs and support the district in fulfilling instream flow requirements associated with the Deschutes Basin Habitat Conservation Plan requirements,” JoshBailey, General Manager, North Unit Irrigation District.
According to Jeremy Austin from Central Oregon LandWatch, “We’re optimistic that this bill will help address inefficient water management practices in the Deschutes Basin, better align water deliveries with crop water needs, and open up pathways to move water more easily to better meet agricultural, environmental and municipal needs into the future.”
“This is a good step towards smart water movement in the basin,” said Mike Buettner, City of Bend WaterServices Department Director.
"This is one of many tools we can use, alongside system modernization efforts, to help meet the flow targets outlined in the Deschutes Basin Habitat ConservationPlan," said Craig Horrell, General Manager, Central Oregon IrrigationDistrict.
To learn more about water banking, please go to: www.deschuteswaterbank.org
About the Deschutes River Conservancy:
The Deschutes River Conservancy (DRC) was formed in 1996 with a mission to restore streamflow and improve water quality in the Deschutes River Basin. The DRC has a multi-stakeholder board and, through collaborative efforts, has restored up to 350 CFS (equivalent to over 14 Olympic-sized swimming pools per hour) of flow in the basin with non-litigious, voluntary, and market-based programs. For more information about the DRC, visit www.deschutesriver.org.
