Strategic Water Supply Contracts

The Strategic Water Supply Act (NMSA 72-12C-1 et seq.) created the Strategic Water Supply (SWS) Program to help protect New Mexico’s freshwater by supporting the study, production, treatment, and management of brackish water. The Act allows the New Mexico Environment Department (NMED) and the Office of the State Engineer (OSE) to fund projects that use treated brackish water.

SWS Contracts aim to provide financial assistance to for-profit businesses, non-profit organizations, public entities and federally recognized Indian Nations, Tribes, or Pueblos located wholly or partially in New Mexico. Consistent with the Act, the contracts are intended to support projects that strengthen New Mexico’s long-term water resilience and advance state, Tribal, and local government economic development goals, including by supporting the reliability and resilience of critical water infrastructure.

2026 SWS Contracts Request for Proposal Now Open

NMED and OSE are now accepting proposals for the 2026 Strategic Water Supply Contracts. Funding is available to support projects that explore, develop, treat, and beneficially use brackish water to help protect New Mexico’s limited freshwater resources.

Issuance: NMED and OSE issued the Request for Proposals (RFP) on August 28, 2026. Firms interested in obtaining a copy may access and download the document from the Internet on at the following address: https://env-nm.bonfirehub.com

Proposal Due Date and Time: Proposals must be received by the Procurement Manager no later than October 13, 2026, by 5:00 PM MST.

New! Community Opportunity Profiles to Support Partnerships  

Help identify Strategic Water Supply opportunities in your community!

The New Mexico Environment Department (NMED) and the Office of the State Engineer are inviting public entities to submit a Community Opportunity Profile describing local water supply challenges, brackish water opportunities, and potential technical assistance needs.

The profiles are intended to help connect New Mexico communities with qualified firms preparing proposals under the 2026 Strategic Water Supply Contracts RFP. Profiles will be posted publicly so prospective Offerors can learn about community needs, identify potential projects, and explore potential partnerships.

Submitting a Community Opportunity Profile is voluntary and informational. It is not an application for funding, a formal request for technical assistance, or a commitment to participate in a Strategic Water Supply project. Submission of a profile does not guarantee that a firm will contact or partner with the community, that a project will be proposed, or that NMED will select or fund a project. Likewise, firms responding to the RFP are not required to partner with a community that submitted a profile. Offerors may develop projects with other eligible Community Partners.

Learn More about Community Opportunity Profiles

Who can submit a Community Opportunity Profile?

Potential participants may include municipalities, counties, Tribal governments and Tribal entities, and other eligible community or regional entities.

Why submit a profile?

A Community Opportunity Profile gives your community an opportunity to:

  • Highlight a water supply challenge, infrastructure need, or brackish water opportunity;
  • Help potential Offerors understand where technical expertise may be needed;
  • Increase visibility of local or regional water priorities; and
  • Create opportunities for conversations with firms that may be able to propose technical services in partnership with your community.

Communities do not need to have a fully developed project to participate. Profiles may describe needs or opportunities at different stages of development, from early planning and feasibility through engineering, permitting, construction, treatment, and implementation.

View the Community Opportunity Profile Template

Submit a Community Opportunity Profile

For prospective RFP Offerors

Community Opportunity Profiles provide a window into real water supply needs and project opportunities across New Mexico. Offerors are encouraged to review the profiles, identify potential opportunities that align with their expertise, and reach out to potential Community Partners when developing proposals in response to the RFP.

Profiles will be posted on a rolling basis during the RFP solicitation period. Check back here in mid-September to view posted profiles.

Eligible Projects

Eligible projects include research and demonstration projects, feasibility studies, design pilots, environmental documentation projects, and construction projects. Collectively, projects funded by SWS Contracts will meet an array of needs to advance the exploration, production and treatment of brackish water in New Mexico. To this end, all projects must be approved as meeting that objective by the State Engineer.

Pursuant to the requirements of the Strategic Water Supply Act, a successful contract proposal shall:

  • Comply with the Procurement Code, except that the contract duration may extend to twenty years in length, including extensions and renewals;
  • Comply with all applicable state, federal, tribal and local governmental standards, permit requirements and other provisions of law, including public notice, public hearing processes and all other associated requirements related to public involvement, to protect existing water rights, conservation of water within the state, public welfare, public health and the environment;
  • Include financial assurance, other than third party guarantees, to the Department of Environment in accordance with rules promulgated by the Water Quality Control Commission, running to the benefit of the state and with any forfeitures deposited in the State Treasury in the Strategic Water Supply Program Fund;
  • Clearly demonstrate how the project will advance State, Tribal or local government economic development goals in accordance with the purposes of enhancing the State’s fresh water resources;
  • Include a specific, actionable and measurable community benefits plan that includes a process for community engagement and is designed to provide broadly shared benefits to members of the public who are or may be impacted by the Strategic Water Supply Program Contract. 

More information on eligible project types will be available in the 2026 SWS Contracts RFP once it is posted.

Details on Different Project Types

SWS Contracts projects must fall under one of the listed project categories.

Project CategoryDescription
Construction ProjectsDevelop, expand, or implement full-scale brackish water treatment facilities and related infrastructure.
Design PilotsTest treatment technologies and project designs before full-scale implementation.
Environmental Documentation & DemonstrationComplete environmental review, permitting, and demonstration activities needed to advance projects toward implementation
Feasibility AssessmentsEvaluate potential projects and determine technical, financial, operational, and regulatory feasibility.
Research ProjectsDevelop innovative treatment technologies and improve scientific understanding of brackish water resources.

Questions?

Submit questions regarding the SWS Contracts through the Contact Us form.

SWS Funding Pathways

Contact

Back to Top