As water rights transfers in Colorado increase in magnitude and frequency due to water scarcity and population growth, it is becoming increasingly necessary to have a method of protecting water rights owners against unknown risks or encumbrances. The inability to obtain reliable new water rights through appropriation has compelled many municipalities, businesses, and other water users to purchase or lease existing water rights. The emergence of water rights title insurance in Colorado has become an important development because of the greater potential for defects and ambiguities in water rights records. Despite the current limitations in water rights title insurance policies, this comment argues that this extension of title insurance is a positive development for protecting water rights ownership.

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