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the main canal to the point of use. Because deficient water supply conditions would continue to exist even after completion of the project, it is necessary that local interests make every effort to conserve the available supply. For this reason, it is essential that all water supplies be distributed in lined canals or underground pipe systems. Several water user organizations have lining programs in progress and others are planning such work in the near future. It is anticipated that the new systems required in areas now served exclusively from ground-water pumping will be of a similar nature. The conservation of water by the increased efficiency of operation and curbing of the nonbeneficial consumptive uses has been taken into consideration in the analysis of water supply under future project conditions. Other matters of administration and operation which must be considered during later studies include the method of handling water exchanges to the upstream areas of Arizona and western New Mexico. These upstream areas are along streams which have been over appropriated, and offsetting present overdrafts and providing future development will be dependent upon water imported through the Central Arizona Project. In this connection, close coordination will be required with the Corps of Engineers and other agencies planning reservoir developments in these upper areas to explore possibilities for integrating these features into the Central Arizona Project. One such instance would be the utilization of storage which may be available in the proposed Camelsback Reservoir at the head of the Safford Valley. This report does not evaluate the benefits provided to the operation of the Bridge Canyon Dam and Reservoir by regulation and storage provided by Glen Canyon Dam and Reservoir. Although the benefits are difficult to evaluate, the function of Glen Canyon Dam enhances the feasibility and operation of Bridge Canyon Dam and Reservoir. 10Epson Perfection 4870 Photo, 400 dpi, 8 bit, 14,176,256 byte