The Strategic Water Supply Fund

The Strategic Water Supply Act (NMSA 72-12C-1 et seq.) establishes the Strategic Water Supply (SWS) Program as a way to protect New Mexico’s freshwater resources through the development and management of brackish water. The Act authorizes the New Mexico Department of Environment (NMED) and the Office of the State Engineer (OSE) to enter into contracts and award grants for projects that utilize treated brackish water.

The Strategic Water Supply Fund has an initial appropriation of $40 million available to kick start the program. More information regarding grants is available through the Strategic Water Supply Grants page. More information regarding contracts is available through the Strategic Water Supply Contracts page.

Brackish water is defined in the Strategic Water Supply Act as water that is sourced from an underground stream, channel, artesian basin, reservoir or lake, having reasonably ascertainable boundaries, that contains not less than one thousand parts per million of dissolved solids and is not produced water. Treated brackish water means brackish water that has undergone a process to remove or eliminate contaminants to meet applicable standards for water quality established pursuant to the Water Quality Act by the Water Quality Control Commission. 

The Strategic Water Supply (SWS) Program is a groundbreaking initiative aiming to protect New Mexico’s freshwater supply in the face of climate change-induced challenges. House Bill 137 was approved and signed into law in 2025, creating the Strategic Water Supply Act. For more information on the Act and the history of its creation, click here.