Hidden Valley Ranch Pagosa Springs, CO
The private dock and pontoon boat on the lake

Senior Water Rights — Four Mile Ditch, Priorities to 1890

In Colorado, water is first in time, first in right. Senior rights are the ones that still deliver in a dry year.

Water here is held by the Hidden Valley Ranch association rather than by any individual parcel, through 2.08 shares of the Four Mile Ditch Association. Colorado allocates water by prior appropriation — first in time, first in right — and the Four Mile Ditch priorities run back to 1890, which places them among the senior rights on the drainage. In a dry year, senior rights are the ones that still deliver while junior rights get curtailed.

Who owns what. The rights are held by Hidden Valley Ranch (the homeowners association), not by any individual parcel. Owners benefit through the association rather than through a right attached to their own acreage.

How Colorado Water Law Actually Works

Colorado does not follow riparian law. Owning land along a stream does not entitle you to its water. Instead the state uses prior appropriation, usually summarised as first in time, first in right. Whoever first put water to beneficial use holds the earliest priority date, and in a shortage the State Engineer curtails junior rights — the newer ones — so that senior rights can be filled in full.

The practical consequence is stark. In a drought year, two neighbouring ranches with identical acreage can have completely different outcomes: the one with an 1890s priority irrigates, and the one with a 1970s priority gets a call from the division engineer telling it to shut the headgate. The land looks the same in a photograph. It is not the same asset.

The Four Mile Ditch

Water is diverted from Four Mile Creek, roughly two miles inside the San Juan National Forest and carried through the Four Mile Ditch. The ditch association holds four adjudicated priorities:

Four Mile Ditch Association — adjudicated priorities
1890 14.25 CFS
1895 5.25 CFS
1898 3 CFS
1900 5.5 CFS

An 1890 priority is genuinely senior on this drainage — the kind of date that keeps delivering in the years when nothing junior does. Hidden Valley Ranch holds 2.08 shares of that association, equating to 3.885 CFS.

The Storage Right

Separately, the ranch holds a storage right of 985 acre-feet, adjudicated in 1994–95. Once the water is stored in the lake it belongs to Hidden Valley Ranch outright — it does not have to be released downstream.

That is the number worth sitting with. Projected domestic demand across the whole ranch at full build-out is approximately 23 acre-feet a year — so the volume the ranch can hold in the lake is more than forty times what all thirty-five homes are expected to use in a year. In practice, very little of the stored water gets drawn down at all.

The ranch also holds what is recorded as a well right. In practice it is not a well: it is the right to draw water out of the lake through a pipeline.

Why This Cannot Simply Be Acquired Later

Most Colorado basins — including the San Juan — are effectively fully appropriated. There is no meaningful new water to claim. Changing an existing right to a new use or location requires a water court proceeding, takes years, costs real money, and is frequently opposed by other users. Seniority that is already decreed and already attached to an established ditch is something ownership gives you access to, and nothing else does.

It is why the water column tends to be the first line a sophisticated buyer looks at, and why it has a page of its own here.

Summary
Held by Hidden Valley Ranch (the homeowners association)
Ditch association Four Mile Ditch Association
Shares 2.08 shares 3.885 CFS
Oldest priority 1890 4 priorities in total
Diversion Four Mile Creek, roughly two miles inside the San Juan National Forest
Storage right 985 acre-feet Adjudicated 1994–95
Domestic demand at build-out approximately 23 acre-feet a year
Water division Water Division 7 (San Juan River Basin)
Lake pipeline right The ranch also holds what is recorded as a well right. In practice it is not a well: it is the right to draw water out of the lake through a pipeline.
Irrigation ponds Two irrigation ponds within the ranch. This property is connected to one of them, so landscaping is irrigated with pond water rather than drinking water.

The Ponds

Beyond the lake, there are two irrigation ponds within the ranch. This property is connected to one of them, so the landscaping is irrigated with pond water rather than drinking water — a small detail that matters a great deal across a dry mountain summer.

Getting the Documentation

The Hidden Valley Ranch association holds all water right and legal documentation. It is not held by the listing office, and a buyer requests it through the association.

The private lake and the fishing
About Hidden Valley Ranch
Ask us to connect you with the association

This page explains Colorado water law in general terms so that a buyer can ask better questions, and summarises figures provided by the association. It is not legal advice, and nothing here substitutes for review of the decrees and the state records by a Colorado water attorney.

Questions Buyers Ask

Frequently Asked Questions

What are senior water rights, and why do they matter in Colorado?

Colorado allocates water by prior appropriation: first in time, first in right. Every water right has a priority date, and in a dry year the state curtails the most recent (junior) rights first so that the oldest (senior) rights are satisfied in full. A senior right therefore keeps delivering in exactly the years when water is scarce and most valuable. New rights are effectively unavailable on most drainages, so seniority on an established ditch is something that can be inherited through ownership but cannot be created later.

Who actually owns the water rights?

The Hidden Valley Ranch association does, not any individual parcel. The association holds 2.08 shares of the Four Mile Ditch Association, equal to 3.885 CFS, together with a 985 acre-foot storage right in the lake. Owners benefit through their membership in the association rather than by holding a right appurtenant to their own acreage. It is an important distinction, and one your water attorney will want stated plainly.

How senior are the Four Mile Ditch rights?

The Four Mile Ditch Association holds four adjudicated priorities: 1890 for 14.25 CFS, 1895 for 5.25 CFS, 1898 for 3 CFS and 1900 for 5.5 CFS. An 1890 priority is genuinely senior on this drainage. The water is diverted from Four Mile Creek roughly two miles inside the San Juan National Forest.

What happens to the water once it reaches the lake?

Hidden Valley Ranch holds a storage right of 985 acre-feet, adjudicated in 1994–95. Once water is stored in the lake it belongs to the ranch outright and does not have to be released downstream. Against that, projected domestic demand at full build-out is only about 23 acre-feet a year — so the ranch uses a small fraction of what it can store.

Where do I get the water documentation?

The Hidden Valley Ranch association holds all of the water right and legal paperwork; it is not held at the listing office. We will put you and your water attorney in contact with the association to obtain it during diligence.

Want to review the decrees? We will connect you and your water attorney with the association.

Schedule Showing (970) 946-7347