In many interstate river basins, the institutional arrangements for th
e governance and management of the shared water resource are not adequ
ately designed to effectively address the many political, legal, socia
l, and economic issues that arise when the demands on the resource exc
eed the available supplies. Even under normal hydrologic conditions, t
his problem is frequently seen in the Colorado River Basin. During sev
ere sustained drought, it is likely that the deficiencies of the exist
ing arrangements would present a formidable barrier to an effective dr
ought response, interfering with efforts to quickly and efficiently co
nserve and reallocate available supplies to support a variety of criti
cal needs. In the United States, several types of regional arrangement
s are seen for the administration of interstate water resources. These
arrangements include compact commissions, interstate councils, basin
interagency committees, interagency-interstate commissions, federal-in
terstate compact commissions, federal regional agencies, and the singl
e federal administrator. Of these options, the federal-interstate comp
act commission is the most appropriate arrangement for correcting the
current deficiencies of the Colorado River institution, under all hydr
ologic conditions.