The federal government finalized a two-year Colorado River operating plan that imposes substantial reductions on Arizona, California and Nevada beginning in 2027. The Lower Basin states are expected to absorb about a 21% reduction, with the possibility of substantially deeper cuts after 2028 if reservoir conditions remain poor. Arizona officials have objected to the allocation of responsibility and discussed preserving legal options. The immediate state choice is whether to emphasize litigation and interstate bargaining, accelerate internal conservation and compensation, or combine both while preparing permanently for a smaller river supply. Arizona can fight over whether the cuts are fair and still prepare for the possibility that less river water is the long-term reality.