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Steamboat Springs — Here in the semi-arid West, few issues are as important to the long-term viability of a community as water rights and water policy.

That's why we can't help but be intrigued by Steamboat Springs water attorney Tom Sharp's proposed multi-entity water storage exchange. The proposal isn't without obstacles - and perhaps some of them are insurmountable for some of the entities - but Sharp's creative proposal is just the type of thinking that could save the city of Steamboat Springs and its residents millions of dollars, while simultaneously firming up future water needs. That fact alone demands that city officials and their water experts at least consider the potential benefits and pitfalls of Sharp's proposal and potentially use it as a jumping-off point for further negotiations.

Sharp's proposal involves a water storage exchange among five entities: the city of Steamboat Springs, Xcel Energy, Tri-State Generation and Transmission, the Colorado River Water Conservation District and the Upper Yampa Water Conservancy District. Water storage facilities at the heart of the exchange are Elkhead Reservoir near Craig, Steamboat Lake in northern Routt County and Stagecoach Reservoir in southern Routt County.

The ultimate result of the exchange would be that the city of Steamboat Springs would receive as much as 2,000 acre-feet of water storage rights in Steamboat Lake. That water would augment the city's existing 8 cubic feet per second, direct flow water right on the Elk River. Adding 2,000 acre-feet of water storage also could indefinitely postpone the city's future need to build its own reservoir on the Elk River. That additional capacity is needed for future development in west Steamboat and to achieve the city's goal of reducing its reliance on the Fish Creek watershed.

The city has estimated the cost of constructing a 1,500-acre-foot reservoir on the Elk River at about $12.5 million. A location for that reservoir has not been determined.

City officials have acknowledged that, for years, they've considered Steamboat Lake a viable water-storage option. But there remains a significant advantage to building an Elk River reservoir of their own: The city would own those water rights in perpetuity, not lease them.

Most of the entities involved in the proposed exchange say they haven't had time to fully vet Sharp's suggestions. And truth be told, there are a lot of complicated issues to sort through. Sharp's draft proposal might not be the answer, but it's an innovative idea that is worth fully exploring. When talking about water, it's never too early to plan for the future. We hope city officials agree.