Environmental

What is the significance of the Colorado River Compact for Nevada water rights and real estate development?

AIt has no effect on Nevada water rights
BThe Colorado River Compact allocates water among seven states including Nevada, limiting Las Vegas and southern Nevada's water supply and affecting the feasibility of new development✓ Correct
CIt provides Nevada unlimited Colorado River water rights
DIt only affects Arizona and California water users

Explanation

The 1922 Colorado River Compact (and subsequent agreements) allocates Colorado River water among states. Nevada has one of the smallest allocations (300,000 acre-feet/year).

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