Proposed Federal Changes on Water Resource Regulation Could Impact Landowners
On November 17, 2025, the Environmental Protection Agency and the United States Army Corps of Engineers released a proposal to revise the definition of “Waters of the United States.” The Waters of the United States (WOTUS) is a regulatory definition that determines which waterways and wetlands fall under federal jurisdiction and protection under the Clean Water Act, establishing where federal environmental regulations apply for permits, pollution discharge, wetland mitigation, protection of drinking water sources, and wildlife habitat. These agencies say they are planning to bring clearer guidance on which rivers, wetlands, and water courses require federal permits when projects are planned. The proposal is now in a 45-day public comment period and may change before it becomes final. After reviewing public comments, the agencies will prepare their final version. Based on recent press releases and the standard federal rulemaking process, these revisions could go into effect sometime in late 2026 or early 2027.
For landowners and land stewards across Colorado, Wyoming, Montana, New Mexico, and the broader West, these potential changes could be significant. Our region includes many seasonal streams, wet meadows, irrigation systems, and highly productive fisheries. Ranch owners often build ponds, improve streams, repair road crossings, or restore habitat, all of which can require federal permits. Understanding where federal authority begins and ends is important for planning, budgeting, and maintaining resilient lands.
Today, many projects near water, such as restoring eroded streambanks, installing bridges or culverts, and expanding a pond, may require federal review if the work affects waters the federal government considers protected. In most cases, this means navigating a permitting process before breaking ground to understand the impacts of dredge or fill material discharging into waterways and wetland areas that are disturbed or converted to uplands. Where the process stands now is simple, and nothing has yet changed on the ground. Landowners should continue working under the current system while keeping an eye on how the rulemaking process develops over the next year.
Under the new proposal, federal jurisdiction would apply mainly to waterbodies that flow or hold water year-round, and to wetlands that remain directly connected to them via surface flows. This could mean that many small or seasonal features, such as side channels, dry washes, isolated wetlands, and some stock tanks, may no longer fall within the federal permitting process. For ranch owners, this might mean quicker timelines and fewer federal reviews for certain projects. For conservationists and sportsmen, this raises questions about how seasonal water sources, riparian habitat, and associated fisheries will be protected in the long term.
If the rule changes, some responsibilities now handled at the federal level are likely to shift to states. Many Western states, including Colorado, already regulate water and wetland work when federal oversight does not apply. A change in federal authority could lead to more local regulations for wetlands, seasonal streams, and water quality, which would require landowners to coordinate with state agencies earlier in their planning process. Proponents argue this shift could streamline permitting by reducing federal bureaucracy; however, it also raises concerns about potential inconsistencies between states. States with fewer resources or different priorities might provide less rigorous protection for water quality and wetlands that affect downstream communities and ecosystems, while other states may impose more stringent or complex requirements than federal standards, potentially making the permitting process more burdensome and costly for projects working across multiple jurisdictions.
Similar to past revisions to the definition of “Waters of the United States,” this proposal will likely generate debate and legal challenges before anything is finalized. For now, ranch owners planning stream enhancements, pond construction, wetland design, roadwork near water, or other water-related projects should follow the progress of this rule and speak with professionals familiar with both federal and state permitting. Confluence Land Company and our strategic partner, Freestone Aquatics, are well-equipped to help landowners and ranch buyers navigate this evolving regulatory landscape.
Confluence Land Company will continue monitoring this process and share new information as it becomes available. In the meantime, we have found the EPA’s Fact Sheet for the Agricultural Community to be a helpful summary of the proposed changes. If you have water, habitat, or infrastructure projects on your property that could be affected, please contact us. We are happy to help evaluate your specific questions.
If you are interested in how stream enhancement can affect the value of Western ranches, please see our Field Note from May 2024 titled “Improving Ranch Values Through River Restoration”.
