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STATE of NEVADA OFFICE of STATE ENGINEER Carson City, Nevada May 6, 19U6 Mr. Ernest Cragin, Mayor City of Las Vegas, Las Vegas, Nevada Dear Mayor Cragin: 1)116110 the rapid development of industry within the Las Vegas Valley, a crisis is rapidly approaching relative to the supply of under-graound water from which source water is furnished to the City of Las Vegas and surrounding areas. To be more specific, the annual amount of water now being taken from the underground supply is nearly equal to the annual recharge. If water were taken from the underground source in an amount equal to the permitted rights now existing, ceed the recharge. the draft would ex­For the past two years this office in cooperation with the U.S8 Geological Survey has been carrying on an extensive study on the under­ground waters in that area and we believe that the study will be completed oy this Falle However, ire are able at this time to estimate with reason­able accuracy the normal recharge and the condition is alarming. Vfe feel that at the moment, the major limiting factor to the growth and prosperity of that area is the water supply. If the growth depends upon the ureter from the underground supply then the Las Vegas Valley is nearing its full development. Section 10 of the 1939 law relating to underground water (Chap0 l/o, Stats. 1939) provides that when the State Engineer determines that the waters from an underground source is fully appropriated, then no fur-her permits shall be issued. Therefore, unless some positive action is taken by the people there to supplement the underground waters with water from another source it will soon become mandatory for the State Engineer to curtail -the issuance of ary further permits. ' realize that such action on our part will have most disastrous affect on the welfare of the Las Vegas Valley, as naturally no new indus­tries, hotels and other large users of water would consider entering an area where there is an inadequate supply of water„