The most expensive mistake in compound planning is buying land and then discovering the water is not yours to use. In much of the West, the deed and the water right are two different things.
Owning land is not owning water
Most of the West follows prior appropriation: first in time, first in right. Water belongs to the public, and the right to use a set amount for a set purpose is granted by the state and ranked by its priority date. That right can be sold separately from the land. A parcel can look perfect, with a creek and a well house, and come with no legal right to use either.
Senior and junior rights
In a dry year, the state cuts off the most junior rights first so the senior ones can be filled. That is not hypothetical. In May 2026, Idaho ordered curtailment of 924 groundwater rights on the Eastern Snake Plain Aquifer that were junior to October 1900. A household on a junior right can lose water exactly when it matters most. The priority date on a water right deserves as much attention as the title to the land.
Household wells by state
| State | System | A household well |
|---|---|---|
| Utah | Prior appropriation | No exemption. A water right and approval to drill come first, and approval can take months. |
| Idaho | Prior appropriation | Exempt up to 13,000 gallons a day, including up to half an acre of irrigation; limits tighten in moratorium and critical areas. |
| Montana | Prior appropriation | Exempt up to 35 gallons a minute and 10 acre-feet a year, with a notice to the state. |
| Wyoming | Prior appropriation | Not exempt. A permit is required before drilling, typically issued in one to two weeks. |
| Colorado | Prior appropriation | Exempt up to 15 gallons a minute; under about 35 acres, often indoor use only. |
| Nevada | Prior appropriation | Exempt up to two acre-feet a year for one home, but often the most junior right in the basin. |
| Texas | Rule of capture | Groundwater belongs to the landowner, subject to the local groundwater conservation district. |
| Tennessee | Regulated riparian | No permit for an ordinary household well; withdrawals of 10,000 gallons a day or more must be registered. |
Rules change and vary within states; confirm the current rules for the specific parcel with the state water agency. Each of our state land guides covers water first.
What to check before you buy
- The water right itself: its number, owner of record, priority date, amount, place and purpose of use, and whether it transfers with the sale.
- The well: its permit or exemption, depth, tested yield in gallons a minute, and a recent water quality test.
- The basin: whether it is closed, over-committed, in a critical groundwater area or under curtailment.
- Surface water: any ditch shares, spring rights or stock water rights, and who maintains the infrastructure.
- The contract: make the purchase contingent on water, and have a water-rights attorney review it.
Storage is a reserve, not a source
Government guidance is one gallon per person per day for drinking and sanitation. At that minimum, a family of six needs 1,080 gallons for 180 days, before cooking, cleaning, livestock or a garden. Tanks and cisterns carry a household through an outage or a contamination event; a permanent source carries it through a season. A compound needs both. See water independence and the water systems we install.
Key takeaways
- In prior-appropriation states, water rights are separate from land and ranked by date.
- Exempt household wells vary widely by state, and Utah has none.
- Senior rights hold through drought; junior rights can be shut off.
- Confirm the right, the well and the basin status before closing.
- Stored water is a reserve, not a source.
- Utah Division of Water Rights: FAQ
- IDWR: Domestic exemption
- East Idaho News: Curtailment order (May 2026)
- Montana DNRC: Water rights permit exceptions
- Wyoming State Engineer's Office: Ground water FAQ
- Colorado State University Extension: Exempt wells
- Nevada Division of Water Resources: Domestic wells FAQ
- Texas Groundwater Protection Committee: Water ownership FAQ
- TDEC: Water withdrawal registration
- Ready.gov: Water (archived)
This guide is general information to help you plan. It is not engineering, legal or water-rights advice, and requirements vary by state and county. Every Styrkholm project is designed by licensed professionals for the specific site.