The SJWCD asked Archuleta County voters in 2004 to approve a bond to help fund the proposed Dry Gulch Reservoir, but the voters turned down the offer.  Nevertheless, SJWCD and PAWSD continued to study and plan for the new reservoir — including making an application for significant new water rights out of the nearby San Juan River for the purpose of filling the future reservoir, since Dry Gulch — as one might expect from its name — has very little water of its own.  Those water rights were granted in 2006, but the case was appealed to the Colorado Supreme Court, which remanded the case back to Durango Water Court Judge Greg Lyman for additional study.

http://www.pagosadailypost.com/news/11234/A_Dry_Look_at_Dry_Gulch/