Mathematical programming models of agricultural production in the Colorado River Upper Basin were integrated with a hydrology model of the Colorado River to assess the impacts of transferring water from irrigation uses in the Upper Basin to urban users in the Lower Basin. One strategy involved a long-term lease of irrigation water on an annual basis. The other assessed a lease-option strategy by the Lower Basin to take Upper Basin water only when needed. The economic impacts measured were changes in regional income, agriculturally generated income, crop production, land use, and input expenditures. Environmental impacts considered were changes in river salinity levels and increased hydropower production resulting from increased intervening [...]