AG Labrador announces landmark agreement to secure north Idaho’s water future

The following is a news release from the Idaho Attorney General's Office:

BOISE, Idaho — Attorney General Raúl Labrador announced today that Idaho has reached a historic settlement agreement ending decades of water rights litigation that threatened existing water users across north Idaho. On Thursday, March 5, 2026, Attorney General Labrador and Governor Brad Little will join Chairman Chief Allan and the Coeur d’Alene Tribal Council and affected stakeholders for a ceremonial signing of the water rights settlement agreement, which protects existing water right holders both within and outside the Reservation.

When Attorney General Labrador took office in January 2023, he immediately prioritized resolving the uncertainty surrounding this economically and socially consequential litigation in order to protect all north Idaho communities. The State participated in complex negotiations involving the Tribe, federal government, and more than 300 stakeholders including the cities of Coeur d’Alene, St. Maries, and Harrison, Benewah County, private water users across the basin, and major employers like Buell Bros., Inc, Hagadone Hospitality, Avista Corporation, Hecla Limited, and Potlatch.

"This settlement is a massive win for all north Idaho families, businesses, and communities who depend on reliable water," said Attorney General Labrador. "For over a decade, this litigation created uncertainty for cities, farms, and employers across the basin. Courts had already held that the tribe was entitled to certain water rights on the Reservation that could affect the region. This settlement avoids continued litigation, protects existing water rights, secures water for future growth, and it is a win for all parties.”

What Idaho Secured:

• Protection of most existing water rights: The Tribe agreed to recognize and protect all existing state law-based water rights, licenses, permits or claims with a date of September 6, 2023, or earlier. 
• Room for future growth: The Tribe agreed to recognize and protect an additional 10,000 acre-feet per year of future state law-based water rights, ensuring north Idaho cities and communities can grow responsibly.
• Restrictions on Federal Overreach: The agreement provides a framework ensuring that use of water protected or established in the agreement isn’t swept up into federal overreach under the Clean Water Act or the Endangered Species Act.
• Final resolution: The settlement fully and finally resolves all tribal water rights claims. No future lawsuits, no uncertainty, and significant legal protection for Idaho water users.
• Zero cost to Idaho taxpayers: The State will not provide direct funding to the Tribe under the settlement.

What the Tribe Receives:

• Certain quantities of water: The Tribe gains defined judicially recognized quantities for their federal reserved water rights and affirms its opportunities to develop the natural resource within the Reservation, while protecting the rights of both tribal and non-tribal Idaho citizens.
• Control of tribal water: The Tribe retains authority to manage its water resources within the Reservation. The agreement also authorizes creation of a tribal water supply bank allowing the Tribe to lease water off the Reservation.
• Ongoing collaboration: State support for federal legislation providing funds for tribal water infrastructure. The Tribe will seek $500 million from Congress for implementation of the agreement and for water infrastructure improvements and other uses. The agreement stands regardless of whether or how much Congress appropriates.

Historical Background:

Following creation of the Coeur d'Alene Indian Reservation by Executive Order in 1873, the question of what water rights the Tribe acquired has remained unresolved for over 150 years. Idaho courts, including the Idaho Supreme Court in 2019, have held that the Tribe was entitled to implied federal reserved water rights on their Reservation with some priority dates reaching back to time immemorial. These rights would have been senior to most every city, farm, business, and homeowner in the Coeur d'Alene-Spokane River Basin. Without the settlement, continued litigation would be required to determine how much water would be held in trust by the United States for the Tribe's use and development, creating years of uncertainty for water users across the region.

The agreement is a victory for all parties and requires approval from the Idaho Legislature during the 2026 session and authorization from Congress.  Throughout these next steps, Attorney General Labrador will continue his efforts to protect the rights of all Idaho citizens and families.