After months of back and forth, an agreement has been reached between states that use the water from the Colorado River, California, Arizona, and Nevada and the Biden Administration. The agreement will likely end in a short-term deal that will have each state voluntarily conserve a large portion of their allotted river water in exchange for over $1 billion in federal funding.

 
There was potential for the Bureau of Reclamation to issue a more drastic plan via a Supplemental Environmental Impact Statement, if the States could not come to an understanding with the Federal Government, but according to Tina Shields from Imperial Irrigation, it seems like the two entities were able to come together.

"We kept coming back to the mantra 'We'd rather propose something that we're able to do than have something imposed on us that's going to end up in court,'" explained Shields. "Everybody, based on our initial read of the SEIS, had extensive comments that would've just locked that thing up in litigation for probably longer than the term of the agreement, and that's not a solution set for a long-term plan. We got sidetracked from the 2007 negotiations to handle this near-term problem, and we needed to handle that so we could get back to the table to talk about the longer-term, harder decision-making that needs to be done."

Though the agreement is not yet a done deal, in terms of the law anyways, it seems like the outcome will result in a solution that is favorable for all the states involved according to Shields.

https://irrigationandlighting.org/news/water-agreement-quells-colorado-river-dissension/