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The attached report of our associates, the engineering firm or Crocker & Byan, based on a cursory and by no means exhaustive study, states that the present -water supply of the Valley from artesian sources is being depleted; that the facilities of the water system at BMI are adequate to meet domestic demand and a small amount of irrigation water; and that the transmission of the water by a pipe line and pumping system is economically feasible. The report gives an estimate of costs of such an xnstallation and consumer costs as compared to comparable areas over the country. The form of organization selected to administer such a system and under which it could be organized was determined to be a Water District, comprising an area roughly the dimensions of the Artesian Basin in the Valley. No authority in law existed for the creation of such a District. Accordingly, the undersigned undertook to assist in drafting legislation designed to accomplish such organization. With the hearty cooperation of the Office of the State Engineer, Senator Baker, and the Attorney General of Nevada, Senate Bill 63 was introduced, later amended in accordance with recommendations of Chapman & Cutler of Chicago, Bond Attorneys, and enacted into law by the Nevada Legislature. Simultaneously, aggressive action was initiated in the Legislature to permit the installation of the Nevada Generator at Boulder Dam, and to authorize the Colorado Eiver Commission to negotiate with the Wax* Assets Administration for the acquisition of the entire facilities at BMI. This legislation was also enacted by the Legislature. The purpose of this latter legislation was to conserve for Nevada and the Las Vegas area the economic growth it had experienced in the period of the building of Boulder Dam and the industrial development during the last War, as a result of the presence of the BMI plant and facilities. It was recognized by all that an adequate water supply and cheap power would hold for the area the industrial potential created by these facilities. - 2-