A century-old Oregon water law is deepening the divide between wealthy irrigation districts and struggling farmers during ongoing drought, with downstream agricultural communities bearing the brunt of water shortages while upstream districts maintain their guaranteed supplies, according to a ProPublica and Oregon Public Broadcasting investigation.
The Central Oregon Irrigation District, which serves Bend and Redmond, holds senior water rights dating to the early 1900s that prioritize its access to the Deschutes River when drought reduces overall water availability. The district diverts more water annually from the river than all other irrigation districts combined during peak season from May to September, according to data from the Oregon Water Resources Department.
Farmers in Jefferson County downstream have responded by fallowing approximately one-third of the county's irrigated agricultural land. Chris Casad, a 38-year-old farmer who purchased his Madras property nine years ago to grow vegetables and potatoes, has been forced to leave fields unplanted and take additional work off-farm. "There were a number of suicides, let alone people who closed up shop, older farmers just not wanting to waste their life's worth of work and their savings on just trying to keep it going," Casad said.
The disparity stems from Western water law principles that grant senior rights holders priority access during shortages. When the state allocated water from the Deschutes in the early 1900s, COID was among the first applicants with a plan for use, securing rights to more than half the river's volume. Under this system, junior water right holders like farmers in Jefferson County receive cuts before senior rights holders see any reduction.
What the Right Is Saying
Property rights defenders and agricultural groups say the senior water rights system provides essential certainty for farmers and communities who built their operations around guaranteed water access. They contend that altering these established rights would amount to a government taking of private property without compensation, potentially bankrupting family farms that invested based on legal water allocations.
COID officials disputed the satellite data analysis, saying they did not trust state measurements and noting that drought years were anomalous conditions rather than baseline reality. District leaders maintain that their system serves legitimate agricultural purposes including grass and pasture production for local ranchers.
Agricultural economists argue that reforming senior rights would create legal chaos and discourage long-term investment in farming infrastructure. They note that Bend's economy has already transformed from timber and agriculture toward tourism and recreation, suggesting the region may be transitioning away from large-scale irrigation regardless of water law structure.
What the Left Is Saying
Environmental advocates and progressive policy groups argue that Oregon's water allocation system prioritizes historical claims over sustainable use and equitable distribution. They point to data showing that during drought years, only one in four gallons diverted by COID was absorbed by crops, with the remainder percolating into groundwater, evaporating, or running off into desert lands.
The Oregon Water Resources Department commissioned satellite analysis of water usage across irrigation districts. While state officials did not dispute ProPublica's findings based on this data, environmental groups say the figures demonstrate how loose definitions of "beneficial use" allow wasteful practices to continue under legal protection. The law prohibits waste but defines beneficial use expansively.
Environmental advocates are calling for legislative reform that would prioritize efficient agricultural and municipal use over historical rights. They argue that in an era of climate-driven drought, water policy must account for ecological sustainability and community equity rather than preserving century-old priority systems.
What the Numbers Show
Six irrigation districts together take more than 90% of the Deschutes River's flow during summer months near Bend. COID alone holds rights to over half the river's total volume, according to state records analyzed by ProPublica and OPB.
The satellite data analysis found that only approximately 25% of water diverted by COID was absorbed by crops across both wet and dry years from 2015 to 2022. The remaining water percolated into aquifers, evaporated in hot desert air, or drained off fields downstream, according to district and state records reviewed by the news organizations.
During the drought period examined, nearly 1,000 Oregon wells went dry and springs feeding the Deschutes reached their lowest recorded flows. State data shows that grass and pasture crops received nearly all water that actually reached plants, with minimal irrigation going to higher-value food production.
The analysis found that among COID's largest water consumers was a horse ranch owned by Phil and Penelope Knight of Nike fame, one of the wealthiest families globally. The operation raises high-end horses and sells hay according to its website.
The Bottom Line
Oregon's century-old water law continues to shape drought outcomes in ways that favor districts with historical priority claims while leaving downstream farming communities vulnerable to water cuts they cannot legally challenge. The system grants COID guaranteed access to more than half the river during shortages, even as efficiency data suggests significant quantities of diverted water do not reach crops.
Reform efforts face substantial obstacles. Property rights advocates argue that altering senior water rights would constitute an unconstitutional taking of private property. Any legislative changes would need to balance agricultural stability, urban growth patterns, and environmental sustainability in a state experiencing increasing drought frequency due to climate change.
Farmers like Casad say they are watching their communities shrink as the policy framework protects upstream users while providing no recourse for junior water right holders facing economic collapse. The Oregon Water Resources Department has not disputed the satellite analysis findings but has not proposed regulatory changes based on efficiency data.