How do water issues affect the decision of businesses to settle in New Mexico?

Water supply is a critical factor influencing business decisions in New Mexico due to the state's arid climate and limited water resources. Businesses often assess the reliability and sustainability of water access when considering a location, as water is essential for various operations, from manufacturing to agriculture. The availability of water not only impacts operational costs but also the potential for growth and expansion in a state where water scarcity can affect overall economic stability.

In New Mexico, where water rights and management play a significant role in the economy, businesses need to ensure that they can secure enough water for their needs. Moreover, industries that rely heavily on water, such as agriculture, are particularly sensitive to water availability and regional hydrology. Hence, the access to a consistent and adequate water supply is paramount for attracting and retaining businesses in the state.