Landowner’s Guide 

to Incorporating

Irrigation Ditches and 

Laterals

February 2005 

1
2

INFORMATION DIRECTORY 

Irrigation Companies/Districts

NOTE: Several irrigation companies/districts provide irrigation water to the Grand 

Valley. The center map/description sheet shows their service areas. 

Grand Valley Irrigation Company ..............................................................970-242-2762 

Grand Valley Water Users Association .....................................................970-242-5065 

Mesa County Irrigation District ..........................................970-464-5209, 970-464-5113 

Orchard Mesa Irrigation District.................................................................970-464-7885 

Palisade Irrigation District..........................................................................970-250-2404 

Redlands Water & Power Company..........................................................970-243-2173 

Water and Land Resource Organizations

U.S. Department of Interior, Bureau of Reclamation, ...............................970-248-0652 

 Water Conservation Coordinator, Grand Junction 

U.S. Department of Agriculture, Natural Resources .................................970-242-4511 

 Conservation Service, Grand Junction 

State of Colorado, Division of Water Resources 

 State Water Engineer, Denver........................................................303-866-3585 

 Division Five Office, Glenwood Springs..........................................970-945-5665 

 Water Commissioner, Grand Junction............................................970-245-5884 

 Colorado Water Conservation Board, 

 Grand Junction ...............................................................................970-248-7305 

Mesa County Water Association ...............................................................970-858-7363 

Grand Junction Drainage District ..............................................................970-242-4343 

Colorado River Water Conservation District,.............................................970-945-8522 

 Glenwood Springs ................................................................................................ 

Colorado State University, Cooperative Extension, ..................................970-244-1834 

 Grand Junction 

Mesa County Assessor’s Office, Grand Junction ......................................970-244-1610 

 (Land ownership records) 
Landowner’s Guide 

to Incorporating 

Irrigation Ditches and Laterals 

3

February 2005 

his booklet provides a general guide for organizing, managing, and incorporating your lateral 

ditch or pipeline delivery system. Because laws and rules are unique to different areas and 

may change periodically, information in this guide may become outdated. Nothing stated in 

this guide should be substituted for professional legal advice. Before taking any action regarding 

incorporation, consultation with an attorney is recommended. The authors and distributors of this 

booklet assume no liability for action taken based upon the information contained herein. 

T

Written by: 

Phil Bertrand Superintendent 

Grand Valley Irrigation Company 

Max Schmidt NRCS Retired 

Dan Crabtree Water Management and Conservation Coordinator 

U.S. Bureau of Reclamation 

Karen Fogelquist Computer Specialist 

U.S. Bureau of Reclamation 
ACKNOWLEDGMENTS

his Landowner’s Guide to Incorporating Irrigation Ditches and Laterals has been 

pre

org

4

pared with the cooperation, advice, and guidance of many individuals and 

anizations concerned with water resource management. The contributions, 

comments, and suggestions from many water resource professionals in the 

T 

Grand Valley were essential to the creation of this guide. 

 The authors wish to express their appreciation for the time and effort contributed by Dick Proctor, 

Manager, and Bill Klapwyck, former Manager, Grand Valley Water Users Association; Jim Rooks, 

Former Manager, Orchard Mesa Irrigation District; Gregg Strong, Superintendent, Redlands Water and 

Power Company; Bob Henderson, former Superintendent, Grand Valley Irrigation Company; and Trena 

Polzin, Salinity Program Coordination Office. Thanks also to the Water Users of Lateral MC70, Inc. for 

sharing information about incorporating their lateral; and to Mark Hermundstad, attorney at law with 

Williams, Turner & Holmes, P.C., for his comments, suggestions, and legal review. 

Thanks also goes to the staff at the U.S. Bureau of Reclamation who helped with this project: Jone 

Wright, Public Involvement Specialist; Lorrie West, Environmental Specialist; and Bob Norman, Civil 

Engineer; for editing, research, and review. Dennis Mosley, Civil Engineering Technician; and Mike 

Steves, Civil Engineer; for the Grand Valley map. Joe Rubalcaba, Hydrologic Technician, for research 

and review. 

Funding for this project was provided by the U.S. Bureau of Reclamation in cooperation with the Mesa 

Soil Conservation District. Permission is granted to reproduce materials from this booklet for nonprofit 

use. 
5

CONTENTS

ACKNOWLEDGMENTS.................................................................................................. 4 

INTRODUCTION ............................................................................................................ 7 

ADVANTAGES OF INCORPORATION........................................................................... 8 

HOW TO INCORPORATE YOUR LATERAL .................................................................. 9 

GATHER AND ORGANIZE INFORMATION........................................................... 9 

SHARE INFORMATION........................................................................................ 10 

HOLD A MEETING ............................................................................................... 10 

DEVELOP ARTICLES OF INCORPORATION AND BYLAWS ............................. 10 

LEGAL COUNSEL REVIEW ................................................................................. 11 

MEETING TO INCORPORATE............................................................................. 11 

COMPLETE YOUR PAPERWORK....................................................................... 11 

PLAN FOR THE FUTURE..................................................................................... 11 

SAMPLE MEETING NOTICE........................................................................................ 13 

SAMPLE ARTICLES OF INCORPORATION ................................................................ 15 

SAMPLE BYLAWS........................................................................................................ 16 

SAMPLE SKETCH #1 OF A LATERAL......................................................................... 20 

SAMPLE SKETCH #2 OF A LATERAL......................................................................... 21 

SAMPLE PROXY .......................................................................................................... 22 

GLOSSARY OF TERMS............................................................................................... 22 

REFERENCES AND INFORMATION SOURCES ........................................................ 27 
Water

The universal solvent, a liquid, a natural resource, a resource that is unlimited in its 

power for growing, producing, stimulating, generating, refreshing and determining 

our way of life, but a resource that can equally be destructive if not wisely used. 

6
INTRODUCTION

This booklet was written to help you, the landowner, become more informed about 

irrigation water. It also provides a step-by-step process to help you manage your lateral.

What is a LATERAL? A ditch or pipeline that delivers irrigation water 

from a canal to one or more water users.

7

any of Colorado’s irrigation systems were built in the early 1900's to provide water for 

farms and ranches. As our population increases, many of these farms and ranches are 

being subdivided into smaller parcels. Today, an irrigation headgate that originally 

delivered water to a single 40-acre farm might be serving more than 40 separate landowners in a 

subdivision on the same 40 acres. This in itself is not a problem--the same amount of irrigation 

water is needed for the land. However, the water must now be delivered to accommodate the 

needs of 40 different people instead of just one farmer. 

M 

When the farmer irrigated the 40 acres, there was only enough water to irrigate a few acres at a 

time. After irrigating the first few acres, the farmer would “change the set” (move the water to a 

different part of the field). It took the farmer a week or so to irrigate all 40 acres. In today’s 40-

acre subdivision, we have about the same amount of water as the farmer did. If we all try to 

irrigate on the same day, there probably won’t be enough water for everybody. It may be 

necessary for us to take steps to manage our water to ensure that everyone gets their fair share 

when they need it. We may also need to organize as a group in order to equitably share the 

responsibilities and costs for lateral maintenance and repairs. 

Following the step-by-step process in this guide will help you organize, manage, and at the same

time learn about your lateral. Although the booklet describes how to incorporate your lateral, 

much of the information also applies if you are forming a Homeowner’s Association to manage 

your lateral, or you just want to learn more about your delivery system. The two basic parts of 

incorporating are: 1) gathering information and organizing the lateral with the other landowners, 

and 2) managing the lateral for the future benefit of the landowners. 

If you decide to incorporate your lateral, we recommend that you organize as a nonprofit mutual 

ditch company (corporation). You will need to choose a method for establishing ownership in 

the corporation. This can be done either by membership or by shares (stock certificates). Issuing 

shares or stock ownership certificates involves some extra paperwork and expense, but has some

advantages. For example, stock certificates provide each landowner with a legal document 

certifying their ownership in the corporation. 
hether or not you choose to incorporate your lateral delivery system, there are three Wimportant keys to success: 

1) communication, 

2) cooperation, and 

3) a working knowledge of your lateral delivery system. 

Learning all you can about your delivery system is the first step toward solving problems on 

your lateral. 

If you complete Step 1 of the process outlined in this booklet, you will gain a good working 

knowledge of your system. The remaining steps involve communication and cooperation with 

the other landowners on your lateral. 

This booklet will help you start organizing your lateral. Please read the information provided (refer to the 

Glossary of Terms on page 19 for definitions of any unfamiliar terms), talk to your irrigation company or 

district, and consult the references and information sources listed for additional help. 

Good luck and happy irrigating!

ADVANTAGES OF INCORPORATION

By forming a corporation, you gain these benefits: 

1. Your lateral becomes a legal entity with a clearly stated purpose and rules governing what 

members can and cannot do. 

2. You have a businesslike process for making group decisions about the lateral. 

3. The corporation has contracting ability, and individuals may no longer be personally liable 

on such contracts. 

4. You have an established process for collecting fees (assessments) from water users and 

enforcing compliance with the lateral's rules. 

8

5. Water deliveries can be regulate This

will help eliminate di

6. Governmen agencies and private companies can work with one 

org

the la

7. All landowners on the lateral can equitably share the responsibilities and costs for 

maintenance and administration.

d, scheduled, and enforced by the lateral corporation.

sputes among the water users. 

t

anized and managed legal entity regarding improvements on

teral. 
9

. You have a clearly defined process for adding new landowners to the lateral. 

. Property owners have an additional selling point when potential buyers know that the lateral 

OW TO INCORPORATE YOUR LATERAL 

aving trouble or communication problems regarding your irrigation water? Would you like to get these 

 Her e is Wher e Yo u Start!!!

THER AND ORGANIZE INFORMATION

t:

ur land classified as irrigable, and do you have water rights? 

....................................

alk to:

r local irrigation company or district...............................................................................

et information about your lateral’s Number .........................................................................

l)

List the name, address, phone number, and number of shares or water rights for each landowner 

....

Get

hat kind of delivery system Pipe ..........................................................................................

ow does the delivery system work?

emand................................................................................

8

9

is organized and works efficiently. 

H

H

problems resolved? 

 

GA

Find ou

1 

Is yo

(your land may or may NOT have water rights).........................

Are your water rights attached to your land? ........................................................................

Which local irrigation company/district provides your water? .............................................

T

You

Natural Resources Conservation Service (NRCS).................................................................

Bureau of Reclamation (USBR) ............................................................................................

Other lateral or ditch groups that have incorporated .............................................................

Local, State, or Federal entities that deal with water.............................................................

G

headgate (where the lateral Size................................................................................

starts at main irrigation cana Amount of water ...........................................................

on your lateral (add up these water rights to get the total amount of water at the lateral’s 

headgate)............................................................................................................................... 

legal descriptions of the properties served by your lateral.......................................................

Obtain maps or aerial photos of the area served by your lateral.....................................................

Sketch your system on a map or photo ...........................................................................................

W

does the lateral have? Concrete ditch ...........................................................................

 Dirt ditch ...................................................................................

H

On d

 Rotation/schedule......................................................................
10

HARE INFORMATIO

r to all the water users on your delivery system. Be upbeat, 

S

Send out an informational lette

en

N

2

courage a fresh start. 

Include a sketch or map of the system (see samples on pages 17-18)............................................ 

OLD A MEETING

vite them to the meeting 

ple meeting notice on pages 8-9 ........................................................................................

vite a water engineer or technical expert (many government 

ree).............................................

H

Se

See sam

nd a notice to the landowners to in 3 

In

agencies such as NRCS or USBR will attend for f

Have a sign-in sheet for attendees names and addresses....................................................

Tap the talents of the landowners .......................................................................................

Elect or appoint a lead person ............................................................................................

Establish a bylaws committee.............................................................................................

Pass the hat to recover costs for postage, paper, etc. .......................................................... 

At the beginning of the meeting, agree on how the meeting will be run. Elect or appoint someone to take notes or 

EVELOP ARTICLES OF INCORPORATION AND BYLAWS

on a name for the corporation (can use Inc., Corp., or Co.)...............................................

rite the Articles of Incorporation and Bylaws (see pages 10-16)................................................ 

s .............................

• 

ee the sample bylaws (page 11) for help. Refer to books on incorporating; make sure your bylaws will meet your needs. 

end draft bylaws to the landowners for comments and suggestions.............................................

ers) .......................................................... 

meeting minutes. 

D

 

Decide

4 

W

• Decide if ownership will be through membership or through 

hares (stock certificates).............................................................

Develop an operation and maintenance plan and a budget.....................................

• Decide how assessments (fees or dues) will be charged.........................................

• Set schedule for annual meetings and Board meetings...........................................

• Develop a system for resolving disputes (arbitration)............................................

• Include provisions for future water users/subdivisions ..........................................

S

Don’t just copy the sample!

S

Schedule a meeting to ratify bylaws and elect officers 

(make an agenda and send it out to the landown
11

GAL COUNSEL REVIEW

no legal requirement to obtain assistance from a lawyer to form a corporation. 

........... 

MEETING TO INCORPORATE

LE

 

There is

5 

However, you might avoid making costly mistakes by seeking professional legal advice.

 

 Did you send the draft bylaws to landowners for comments and suggestions?

Elect officers (Board of Directors) .....................................................................................

TE YOUR PAPERWORK 

ng fees to the State

(see page 25 for address and phone)...................................................................................

ents of your incorporation and service 

...

H



H

.

6 

 Ratify assessments..............................................................................................................

Ratify Articles of Incorporation and Bylaws......................................................................

Elect or appoint the Registered Agent (see Glossary of Terms).........................................

 COMPLE

Submit Articles of Incorporation and fili 7 

Submit forms for nonprofit status to the Internal Revenue Service....................................

Issue stock certificates if you organized the corporation by shares....................................

 PLAN FOR THE FUTURE 

 

Notify the City and/or County Planning Departm

a

8 

rea. Request they notify you of any planned subdivisions in your service area, etc. ......

Notify your irrigation company/district of your incorporation and the names of your Board 

members. Also, keep them informed of any future changes in your Board of Directors..

old annual water users’ meetings (required by law). You can allow water users to vote 

by proxy; see sample on page 19........................................................................................

old periodic Board of Directors meetings...........................................................................

Keep minutes of all meetings................................................................................................

Amend bylaws as needed ......................................................................................................

Set up a corporate record book (for minutes, bylaws, paperwork)........................................

Submit paperwork to the State and the IRS as required........................................................

Inventory the lateral delivery system for future improvement and expansion...................... 

Draw the lateral on a County Assessor’s map, obtain easements for the lateral’s right-ofway, and record them at the Courthouse ...........................................................................
RESOURCES: 

NRCS and USBR Maps, aerial photos, ortho photos, technical assistance. 

Irrigation Companies Shares/water rights and their value, names of water users, 

 and Districts headgate information, number of shares, areas of jurisdiction. 

County Extension Service Technical assistance and information. 

County Assessor’s Office Property legal descriptions, ownership records, parcel maps, plat 

maps. 

How much water is in... 

one Acre-Foot equals... 

? 

? 

? 

≡ 1 acre of land covered with water 1 foot deep 

≡ about 326,000 gallons of water 

≡ enough water to supply a family of four for one year 

one cubic foot per second equals... 

≡ about 450 gallons of water per minute 

≡ about 2 acre feet of water in 24 hours of flow 

≡ equivalent to 38.4 Colorado miner’s inches 

one Colorado miner’s inch of water equals... 

≡ 11.69 gallons of water per minute 

≡ 0.026 cubic feet per second 

≡ the flow of water through a 1 inch square hole with about 5 inches of 

head pressure behind it 

one lawn sprinkler uses... 

≡ about 4 gallons of water per minute 

one “share” equals.... about 4 to 8 gallons of water per minute, depending upon 

which irrigation company/district provides your water. See the center 

map/description sheet for more information. 

 Find out which irrigation company/district serves your lateral, how your 

irrigation water is measured, and whether or not your water rights are attached to 

your land. 

12
SAMPLE MEETING NOTICE 

-This sample intended for reference use onlyDATE: (date the notice is sent out) 

MEETING NOTICE TO THE LANDOWNERS WHO USE IRRIGATION WATER FROM 

LATERAL DITCH (Name or # of your ditch) 

Dear Landowner: 

If your property borders or is intersected by the above lateral ditch running from 

 (describe where the lateral starts and ends, use road names, etc. Example: from 28 1/2 Road to 

just West of 28 Road South to the Colorado River and North to the railroad tracks) , THIS 

MEETING IS VERY IMPORTANT FOR YOU TO ATTEND. 

The meeting will be held on (Date) at (Time) at (Location) to 

discuss the following matters: 

1) Organizing and incorporating the lateral as a legal entity.

2) Establishing reasonable and equitable fees to properly maintain, protect, 

administer and handle the affairs of the lateral. 

3) The approximate costs to incorporate. 

Being organized and incorporated can provide many benefits to us as landowners. 

Proper maintenance and operation of the ditch means getting our fair share of irrigation 

water we've paid for. If we need to work with government agencies or private 

contractors in the future, being a legal corporation can simplify the process and can 

protect individual landowners from liability issues. 

As an organized lateral, we can equitably share the cost of maintenance, establish our 

own bylaws for administration, and have a more direct say as to what happens on our 

lateral system. 

The affairs, problems, maintenance, administration and proper use of our lateral are 

very real. They won't magically take care of themselves and should not be the 

responsibility of a handful of concerned landowners. 

13
Therefore, we are inviting you to join us in forming a lateral corporation. Our goals are 

to properly maintain and administer the lateral to ensure adequate water for everyone. 

There is no legal requirement that all the landowners on the lateral agree to form a 

corporation. However, it is in our best interest if we all work together and participate in 

this process. 

We STRESS the importance of your attending this membership meeting to consider and 

act upon the above items of business. If you have any questions, comments or want 

more information, please contact any of the following: 

John Doe, 555-9999 

 Jim Jones, 555-5555 

Mary Smith, 555-8888 

We look forward to seeing you on (Date) at (Time) at (Location) . 

PLEASE ATTEND!! YOUR PARTICIPATION IS IMPORTANT!! 

14
SAMPLE ARTICLES OF INCORPORATION

OF A COLORADO NONPROFIT CORPORATION 

 Sample intended for reference use only. Please refer to the references or 

 obtain legal counsel to adapt this sample to your particular situation. 

The undersigned persons acting as incorporators of a nonprofit mutual ditch corporation under the Colorado 

Nonprofit Corporation Act execute the following Articles of Incorporation for such corporation: 

FIRST: The name of the nonprofit mutual ditch corporation is:

 (Name of Your Lateral Company) 

SECOND: The source of the water is the (name of the irrigation canal and irrigation

company/district that provides your water) . The water is taken from (exact location 

and name or number of the lateral’s headgate). The route of the lateral ditch is 

(describe exactly where the lateral goes, from its beginning at the canal headgate to its

end). The water in the lateral ditch is intended to be used for the purpose of 

(describe, e.g.“irrigating lands owned by the members of this corporation”). 

Information 

required by 

Λ

Section 

 7-42-101 

C.R.S. 

THIRD: The name and address of the initial registered agent of the nonprofit corporation 

are: 

 (Person on your lateral who will receive legal paperwork 

 from the State. Include street address; cannot be a P.O. Box) 

FOURTH: The nonprofit corporation (will/will not) (circle one) have members. (Your lateral 

company WILL have members)

FIFTH: Provisions regarding the distribution of assets on dissolution are: (legal and/or

financial advice may be needed) 

 

SIXTH: The nonprofit corporation shall have ______ directors who shall serve as the initial 

board of directors. The names and addresses of the directors are: 

___________________________ _____________________________ 

___________________________ _____________________________ 

SEVENTH: The name and address of each Incorporator is: 

Can list the board directors above; _______________________________ 

 don’t list all members of the lateral) ______________________________ 

Signature of each incorporator: 

____________________________________________________________ 

____________________________________________________________ 

15
SAMPLE BYLAWS 

16

Sample intended for reference use only. Please refer to the references or 

 obtain legal counsel to adapt this sample to your particular situation. 

BYLAWS OF (Name of Your Lateral) 

ARTICLE I - NAME OF THE ORGANIZATION 

SECTION 1 - The name of the organization shall be (Name of Your Lateral) . 

SECTION 2 - Location and service area is (describe the boundaries of the area served by the

lateral; list road names, and city, county, and state) .

ARTICLE II - PURPOSE 

SECTION 1 - The purpose of this company shall be for the management of the lateral for the 

landowners whose properties are irrigated with water from this lateral. 

SECTION 2 - To manage, upgrade, maintain, repair, clean, and when necessary reconstruct the 

lateral in the best interests of all members. 

ARTICLE III - MEMBERS 

SECTION 1 - Members will be property owners, in good standing, who own or lease water 

shares or own water rights in the (Name of your irrigation district/company) and 

whose properties are located within the lateral service area described in Article I. 

SECTION 2 - Share certificates (“will” or “will not”) be issued to members. 

SECTION 3 - Membership in the organization will be retracted upon the sale of the property 

affected and membership can be transferred to the new owner(s).

SECTION 4 - No new members (other than transfers as described in Section 3 above) will be 

accepted unless first approved by the Board of Directors. Decisions for new 

members will be based on the cost factors of maintenance, repairs, construction, 

space available, and physical limitations of the lateral system. 

ARTICLE IV - BOARD OF DIRECTORS 

SECTION I - The affairs of this organization shall be managed by a Board of Directors 

consisting of elected officers including the President, Vice President, Secretary, 

Treasurer, and (other Board member(s) if desired) . 

SECTION 2 - The Board shall govern the operation, maintenance and repair of the lateral and

will arbitrate any dispute that may arise concerning the lateral. The Board will 

determine the amount of assessments due each year, and such amount will be 

put to a vote of the membership at the Annual Meeting. 
17

 

 Sample intended for reference use only. Please refer to the references or 

 obtain legal counsel to adapt this sample to your particular situation. 

SECTION 3 - A majority of the Board of Directors shall constitute a quorum for the transaction of business. Each Board member shall have one (1) vote on matters 

decided by the Board. 

SECTION 4 - Any vacancy during the term of a Board member will be filled by the Board of 

Directors appointing a replacement to serve until the next Annual Meeting. 

SECTION 5 - The Board members shall not be personally liable for the debts, liabilities, or 

other obligations of the corporation. 

ARTICLE V - DUTIES OF OFFICERS 

SECTION 1 - PRESIDENT: Shall preside at all meetings, appoint committees and their 

members, and make reasonable decisions and expenditures in an emergency 

situation (not to exceed $_____). Shall manage the Company in accordance 

with the best interests of the majority of the members, with the help of the Board. 

Shall co-sign all Company checks along with the (“Treasurer.” You decide which 

officers must sign the checks.) . 

SECTION 2 - VICE PRESIDENT: Shall assist the President as a member of the Board. 

Assumes the duties of the President in his/her absence. 

SECTION 3 - SECRETARY: Shall assist the President as a member of the Board, keep the 

records of all proceedings of regular and board meetings, and take care of all 

Company correspondence under the direction of the President. 

SECTION 4 - TREASURER: Shall assist the President as a member of the Board, take care 

of all Company funds, be prepared to give a financial statement when asked, 

and sign all Company checks along with the (“President.” You decide which 

officers must sign the checks.) . Shall deposit all monies at such depository as 

shall be designated by the Board. 

SECTION 5 - (Describe any additional Board members here.) 

ARTICLE VI - FINANCES 

SECTION 1 - All funds of the Corporation shall be deposited to draw a favorable rate of 

interest in a bank or other such depository as authorized by the Board. 

SECTION 2 - Annual dues will be collected for the purpose of funding maintenance, emergency repairs, and administrative expenses . Dues shall be $ , due in 

(Month) , and delinquent after (Month) of each year. (You decide the dollar 

amount, and whether dues will be based on number of water shares, acreage,by delivery 

turnout, or a combination thereof) . Delinquent dues will be charged interest at the 

rate of % per month until paid. At the recommendation of the Board, a lien

may be filed against the property of delinquent water users. 
18

Sample intended for reference use only. Please refer to the references or 

 obtain legal to adapt this sample to your particular situation. 

SECTION 3 - Special assessments to fund construction or other major expenses may be 

determined necessary by the Board of Directors. Any such assessments 

shall be approved by a majority vote of the membership at the Annual 

Meeting or at a special meeting. If the membership fails to approve the 

recommended assessments, the Board of Directors shall have the power 

to set special assessments as required for the continued operation of the lateral. 

 

SECTION 4 - The Board may authorize any officer or agent to enter into any contract or 

execute and deliver any instrument in the name of and on behalf of the 

corporation, and such authority may be general or confined to specific instances. 

SECTION 5 - No loans shall be contracted on behalf of the Corporation and no evidence of 

indebtedness shall be issued in its name unless authorized by the Board of 

Directors. The purpose of said loan must have been approved by a vote of the 

membership. Such authority may be general or confined to specific instances. 

ARTICLE VII - NOMINATIONS AND ELECTIONS 

SECTION 1 - The membership will elect the Board of Directors at the Annual Meeting. 

Nominees may be made by a nominating committee or may be made from the 

floor. 

SECTION 2 - Each member in good standing is entitled to ___ vote(s) _________. (You decide 

how voting will be done. Votes could be one per member, one per water share, one per 

irrigated acre, etc.).

SECTION 3 - A majority of the voting membership, represented in person or by proxy, including

the Board members, will constitute a quorum for conducting business. 

SECTION 4 - All members must be notified in writing of the Annual Meeting and the tentative 

agenda of the meeting. Any member who wishes to vote by proxy must fill out a 

proxy form prior to the meeting. The proxy form must be signed and dated by the 

member. 

ARTICLE VIII - MEETINGS AND BYLAWS AMENDMENTS 

SECTION 1 - The Annual Meeting will be held (“on the first Saturday in February.” You decide if 

you want to have a certain day specified or not. ) for the purpose of electing officers,

approving projects and necessary assessments, and setting procedures for the 

coming year.

SECTION 2 - Special meetings of the membership shall be called by the Board of Directors or at

the discretion of the President. 
19

Sample intended for reference use only. Please refer to the references or 

 obtain legal to adapt this sample to your particular situation. 

SECTION 3 - Any alterations or amendments to the bylaws will require the approval of 

(you decide the percentage required to approve a change; for example, “2/3" or “a

majority”) of the voting membership. Notices of special meetings to approve 

such proposed changes shall be delivered ( you decide; “no less than 1 week” for 

example) preceding the meeting. 

SECTION 4 - All amendments and additions shall be typewritten by the Secretary, signed by the 

Board, and attached to the original copy of the bylaws.

ARTICLE IX - GENERAL AUTHORIZATIONS 

Use this section to include any special rules or provisions that apply to your particular situation.

SECTION 1 - All members are responsible for participating in the spring ditch cleaning, and for 

keeping the lateral maintained from its beginning at the headgate on the canal to 

the end of the lateral. The annual spring ditch cleaning will be held (“on the 

second Saturday in March”). You decide if you want to specify this in the bylaws; you

could also specify that a notice will be sent to the membership in advance. Any member 

not present (or not represented) at the annual spring ditch cleaning shall be

assessed a $ fee. 

NOTE: 

All irrigation 

ditches must 

be ready to 

receive water 

by April 1 of 

each year. 

SECTION 2 - In the case of a member’s land sold for subdivision, the Board shall require an

acceptable plan showing how the entire acreage will be irrigated from the existing 

lateral to said land. 

SECTION 3 - If the ditch is fenced into private property, the property owner will be held 

financially responsible for any damage caused by the property owner’s activities 

(e.g., breakage or damage caused by livestock in or around the ditch). 

SECTION 4 - Any proposed repairs or alterations to the lateral must first be approved by the 

Board. The Board may authorize funding to complete said repairs. 

NOTE: Owners of irrigation ditches must keep the ditch in good repair throughout the irrigation 

season, prevent water from being wasted, and prevent flooding and/or damage to the 

premises of others. 
SAMPLE SKETCH #1 OF A LATERAL 

USING A RECORDED PLAT OR ASSESSOR MAP 

For this sketch, a base map showing the roads, main canal, and land parcel boundaries

was obtained from the county. The lateral was drawn by hand as a heavy line that 

begins at the headgate on the canal. The heavy dashed lines show where the lateral 

goes under roads. 

In addition to drawing the lateral, you should identify each parcel of land that receives 

water from the lateral, and list the owner’s name, address, and the amount of water the 

parcel is entitled to receive. 

20
SAMPLE SKETCH #2 OF A LATERAL 

For this sketch, the roads, main canal, and lateral were all drawn by hand. The lateral 

was drawn as a line that begins at the headgate on the canal. The line “disappears” 

where the lateral goes under roads. 

Since land parcel boundaries aren’t shown, the numbered circles show the approximate 

location of each parcel that receives water from the lateral. For each parcel, list the 

owner’s name, address, and the amount of water the parcel is entitled to receive. 

21
SAMPLE PROXY

- This sample intended for reference use only - 

I/We, the undersigned, being the owner(s) of shares of stock or members in the (name of your lateral 

company) , hereby appoint a simple majority of the Board of Directors of the (name of your lateral company) , or 

 my true and lawful attorney with power of substitution to represent me (us) and vote my (our) 

stock or membership in the (name of your lateral company) , with full power and authority as I/we would have if 

personally present, for this meeting only on (month, day, year) , for the business put before the shareholders or 

membership at such meeting. 

Date: 

Name (Please print) Name (Please print) 

(Signature) (Signature) 

(Note: joint ownership/membership requires both signatures.)

GLOSSARY OF TERMS

Including water-related terms and definitions of terms used in this booklet. 

Abandonment of Water Right - The abandonment of a water right results from an intent to 

abandon, coupled with an act evidencing that intent. A conditional water right may be terminated 

by the water court for failure to pursue a completed appropriation with diligence. The non-use of 

a perfected water right for an extended period may itself be evidence of an intent to abandon. 

Adjudication - The judicial process through which the existence of a water right is confirmed by 

court decree. 

Adverse Use - Using decreed water that is owned by another appropriator. Adverse use for a 

continuous period of 18 years may result in loss of ownership by the decreed owner and allow 

subsequent usage by the adverse user. 

Appropriation - Application of a portion of the waters of the state to a beneficial use. Often 

used interchangeably with the term water right. 

Appropriator - A person who diverts water and applies it to a 

beneficial use. 

Aquifer - A saturated water-bearing formation, or group of formations, which yield water in 

sufficient quantity to be of consequence as a source of supply. 

 

Assessment - To charge a person or property with a tax or other special payment (as in annual 

fees for irrigation water and its delivery). 

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23

Beneficial Use - Applying water to a useful purpose in an efficient and responsible manner 

without being wasteful. Beneficial uses include domestic, agricultural, industrial, municipal, 

recreational, and mini- mum stream flows filed by the state. 

Bylaws - The laws or rules governing the internal affairs of an organization (from the Middle 

English bylawe or “village law”). 

Call - The request by an appropriator for water which the person is entitled to under his/her 

decree. Such a call will force those users with junior decrees to cease or diminish their 

diversions and pass the requested amount of water to the downstream senior making the call. 

Compact - An agreement between states apportioning the water of a river basin to each of the 

signatory states (as approved by Congress). 

Conditional Water Right - An appropriation that has been started but not completed (see 

Diligence). 

Consumptive Use - The amount of water that is consumed and lost to the stream system while 

applying water to a beneficial use. 

Corporation - A legal entity that enables a group of people to pool energy, time and money for 

profit or nonprofit activities. 

Creek - A natural stream of water, normally smaller than, and often tributary to a river. 

Decree - An official document issued by the court defining the priority, amount, use, and 

location of a water right. 

Diligence - The efforts associated with developing a conditional water right in order to perfect it 

as an absolute water right. In Colorado, the owner of a conditional water right must file an 

application in the Water Court every six years and prove that he or she has been diligently 

pursuing completion of the work necessary to apply the water to a beneficial use. If diligence is 

not demonstrated, the water right is lost. 

Discharge - The volume of water passing a particular point in a unit of time. Units of discharge 

commonly used include cubic feet per second (cfs) or gallons per minute (gpm). 

Ditch Rider - A person responsible for opening, closing, and adjusting the headgates on an 

irrigation canal or lateral. 

Diversion - Removing water from its natural course or location, or controlling water in its 

natural course or location, by means of a ditch, canal, flume, reservoir, bypass, pipeline, conduit, 

well, pump, or other structure or device. 
24

Division Engineer - The person charged by delegation from the State Engineer, Division of 

Water Resources, Colorado Department of Natural Resources, with the duty of administering 

water flows and diversions within a specific water basin. Their offices are located in the cities 

where the water courts are located. 

Drain - A man-made drainage structure that carries irrigation seepage and tailwater to the river 

or a natural wash. Usually a V-shaped ditch (open drain) or an unsealed pipeline (tiled drain) 

that is from 6 to 15 feet deep. 

Easement - A right acquired by a person to use the land or property of another person for a 

specific purpose (for example, allowing a corporation to operate and maintain a lateral that 

crosses the person’s property). 

Effluent Discharge - Disposal of water previously used for municipal and household purposes, 

as in sewage discharge. 

Evaporation - The physical process by which a liquid is transformed to the gaseous state; the 

loss of water to the atmosphere as a result of this process. 

Floodplain - An area adjacent to a stream or other water course which is subject to flooding. 

Futile Call - Arises when the cessation of diversions by a junior appropriator would not result in 

a significant increase in water available to a downstream senior appropriator. In such cases the 

division engineer will determine if the call needs to be honored. 

Gage - (also spelled “gauge”). 

1) An instrument used to measure magnitude or position; gages are used to measure the elevation 

of a water surface, the velocity of flowing water, the pressure of water, the amount of intensity of 

precipitation, the depth of snowfall, and so on. 2) The act or operation of registering or 

measuring magnitude or position. 3) The operation, including both field and office work, of 

measuring the discharge of a stream of water in a waterway. 

Gage Height - The height of the water surface on the gage. Gage height is often used 

interchangeably with the more general term, stage, although gage height is more appropriate 

when used with a gage reading. 

Gaging Station - A particular site on a stream, canal, lake, or reservoir where systematic 

observations of gage height or discharge are made. 

Headgate - A device that is used to control the diversion of water from a stream, canal, or 

reservoir. 

Headwater - Water that is turned onto the head (upper end) of a field for irrigation purposes. 
25

Incorporator - A person who files the Articles of Incorporation when a new corporation is being 

formed. 

Irrigation - The application of water to crops, lawns, and gardens by artificial means to 

supplement natural precipitation. Water can be applied by spreading, sprinkling, or dripping. 

Lateral - A ditch or pipeline that delivers irrigation water from a canal to one or more water 

users. 

Law of the River - The name applied to the legal framework comprised of interstate and interregional compacts, state and federal laws, Supreme Court decisions, and international treaties 

which govern the distribution of water from the Colorado River system. 

Parshall Flume - A device used to measure the flow of water in an open channel (canal or 

ditch). Named for its developer, the late Mr. Ralph L. Parshall, it consists of three main components: a converg- ing inlet section, a straight throat section, and a diverging outlet section. 

Point Source - Pollution from a specific location. Non-point source is from a general area. 

Priority - The relative seniority of a water right as determined by its appropriation date and the 

relevant adjudication date of the right. Relative to other water rights, the priority may make a 

water right “senior” to (pre-dating) other rights or “junior” to (subordinate to) other rights. 

Proxy - The written authorization for a person to act for another (for example, submitting a 

vote). 

Quorum - The minimum number of members of an organization who must be present to conduct 

business. 

Ratify - To give formal sanction to, or approve and so make valid. 

Registered Agent - The person who is assigned to receive legal documents on behalf of a 

corporation. 

Reservoir - A pond, lake, or basin, either natural or artificial, in which water is stored or 

controlled. 

Riparian Doctrine - The system of water law based on English common law allowing 

landowners adjoining lakes and rivers to withdraw “reasonable amounts” of water so long as 

downstream landowners are not unreasonably damaged. Riparian rights are not recognized in 

Colorado. 

River Basin - The area drained by a river and its tributaries. 

Runoff - Precipitation that flows to and in surface streams; renewable water. 
26

State Engineer - The person charged by state law with the supervision and administration of 

water and the enforcement of decreed priority and legislative enactments. The State Engineer 

discharges the obligations of the State of Colorado imposed by compact or judicial orders and 

coordinates the work of the Division of Water Resources with other government departments. 

The State Engineer has rule-making obligations and supervisory control over measurements, 

record keeping, and distribution of the public waters of the State and all employees under his/her 

direction and any other such acts as may be reasonably necessary to enable the performance of 

his/her duties. 

Tailwater - Irrigation water that runs off the end of a field. The water user is responsible for the 

tailwater until it reaches a natural or man-made drainage (e.g., wash, creek, river, drain, etc.), 

including preventing flooding and/or damage to the property of others. 

Tributary - Water that is interconnected with a stream system either by surface or underground 

flows. Under Colorado law, all surface and groundwater, the withdrawal of which would affect 

the rate or direction of flow of a surface stream within 100 years, is considered to be tributary to 

a natural stream. 

Wash - A natural watercourse or the dry bed of an intermittent stream. In many areas of the 

western United States, washes carry irrigation tailwater to the rivers. 

Water Court - A specific district court that has exclusive jurisdiction to hear and adjudicate 

water matters. There are seven water courts in Colorado, each presided by a water judge who is 

also a district court judge. The seven Colorado water courts are located as follows: 

Division 1 - Greeley Division 5 - Glenwood Springs 

Division 2 - Pueblo Division 6 - Steamboat Springs 

Division 3 - Alamosa Division 7 - Durango 

Division 4 - Montrose 

Water Development - The process of building diversion, storage, pumping, and/or conveyance 

facilities to apply water to beneficial use. 

Water Right - The right to use water for a given beneficial purpose with a specific priority. 

Watershed - The area from which water drains to a single point. 

Weir - An overflow structure built across an open channel, usually to measure the rate of flow of 

water. 

Well Permit - The granting of permission by the State Engineer to allow the digging of a hole in 

search of groundwater to apply to a beneficial use. 
27

REFERENCES AND INFORMATION SOURCES 

Publications about Water:

Colorado Water Laws: A Compilation of 

Statues, Regulations, Compacts and Selected 

Cases. 

 Colorado State University 

 Fort Collins, CO 80523 

Synopsis of Colorado Water Law 

State of Colorado, Div of Water 

Resources, Records Section 

 1313 Sherman Street, Rm 818 

 Denver, CO 80203 

 303-866-3447 

 

ΥColorado Citizens' Water Law Handbook 

Colorado Endowment for the 

Humanities Project 

(out of print; available at Mesa County 

Public Library) 

ΥA Landowner’s Guide to Western Water 

Rights 

 The Watercourse 

 201 Culbertson Hall 

 Montana State University 

 Bozeman, MT 59717 

 406-994-5392 

ΥColorado Water 

Colo. League of Women Voters 

1410 Grant Street, B-204 

 Denver, CO 80203 

 303-863-0437 

ΥThese publications are available at 

Mesa County Public Library.

Non-Profit

Ditch & Reservoir Company Alliance 

950 South Cherry Street, Suite 508 

Denver, CO 80246-2664 

303.758.3513 x12 

email: info@darca.org 

website: www.darca.org

 

Irrigation Providers of the Grand Valley 

website: http://www.irrigationprovidersgv 

.org/index.html

Incorporating in Colorado:

Colorado Secretary of State 

Corporations Section 

1560 Broadway, Suite 200 

Denver, CO 80202 

303-894-2251 

Publications about Incorporating:

How to Form a Nonprofit Corporation 

 Nolo Press 

 950 Parker Street 

 Berkeley, CA 94710-9867 

1-800-992-6656 

Incorporating in Colorado Without a 

Lawyer 

 Consumer Publishing Corp. 

 11409 Municipal Center Drive 

 Concord, TN 37933-1830 

 1-800-677-2462
The USDA is an equal 

opportunity provider 

and employer 

For additional copies of this booklet, please contact: 

U.S. Bureau of Reclamation, Water Conservation Coordinator, 970-248-0652 

U.S. Natural Resources Conservation Service, 970-242-4511 

or your local irrigation company/district 

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