Agriculture is the valley's most important industry since indigenous farming. Crops include melons, alfalfa, cotton and vegetables.[6] The Palo Verde Irrigation District (PVID), with its water sourced from the Palo Verde Diversion Dam, controls the canal system for these fields. Dating back to Thomas Henry Blythe's filing in 1877, the PVID has the most senior Colorado River water rights of any California agency.[7]
Water transfers to MWD
In a 2005 agreement, Metropolitan Water District of Southern California (MWD) negotiated with PVID in Blythe to fallow, or idle, farm land for 35 years. The deal will transfer water that would have been used for farming in the area of Blythe, Ripley and Palo Verde to MWD.
According to a 1990 pilot study, water diversions and fallowed farm land reduced farming employment. The MWD provided $6 million in a development fund to reimburse the community for losses caused by shifting water to urban areas.[9]
California currently uses more than its allotted share of water from the Colorado River. The transfer agreement also seeks to address over-use of river water. It is partly designed to reduce overall diversions from the river.
In 2015, MWD purchased more than 12,000 acres (4,900 hectares) in the valley in addition to 9,000 acres (3,600 hectares) owned as of 2004, and is now PVID's biggest landowner. The Irvine Ranch Water District also purchased 3,100 acres (1,300 hectares). On August 4, 2017, PVID filed a lawsuit against MWD over the latter's most recent land purchase and six land leases, which was accused of illegally obtaining water rights.[10]