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This article examines the forces that historically have shaped water law in the American West and the new set of factors that are likely to determine future water law. Creation and use of the prior appropriation doctrine and settlement of the West and resultant increasing water demands are discussed. Current water policy concerns such as budgetary restraints on governments and subsidies, the continuing migration to the West, limited and unrenewable groundwater supplies, water pollution abatement, changing concepts of water use (environmental, recreational, ecological, and aesthetic needs), and Indian rights are identified. The role of state and federal government, conservation, and other environmental concerns in future water policy is addressed. Recent court decisions and legislation in California (the Mono Lake case and the Imperial Irrigation District Decision), Montana (H.B. 680 and the Fort Peck-Montana Compact), and Arizona (the 1980 Arizona Groundwater Management Act) that influence the future of western water are described. The conflict between private rights and the public interest is reviewed. Includes 137 references.