Under federal legislation (PL 97-293; RRA of 1992; Section 210 (a), (b) and (c) and Regulations 43-CFR-427 and 43-CFR-417), IID is required to prepare a federal Water Conservation Plan every five years and to adopt economically feasible objectives to meet the requirement for reasonable and beneficial use.  

AB 3616, the Agricultural Efficient Water Management Act of 1990, required California Department of Water Resources (CDWR) to establish an advisory committee consisting of State, federal, and local agricultural communities and other interested groups and parties to develop a list of efficient water management practices (EWMPs) for agricultural water suppliers. The Governor also directed the AB 3616 advisory committee to develop a Memorandum of Understanding (MOU) between the agricultural and environmental communities and other interested parties to address efficient use of agricultural water in California. The MOU, completed on November 13, 1996, establishes the Ag Council and provides guidance for a reporting process and a mechanism by which signatories can evaluate and endorse plans. IID became signatory to the Agricultural Water Management MOU on December 3, 1996. 

The Ag Council and State have agreed that State Agricultural Water Management Plan requirement would be met by a federal plan accepted by USBR, and USBR has agreed that the federal Water Conservation Plan requirement would be met by a State plan endorsed by the Ag Council and accepted by the State of California.