Denver Water will give up millions of gallons of water in the scenic Eagle River, water it had once counted on for future customers, under a legal settlement unveiled Wednesday. In exchange, Denver preserves some of its water rights in the river and receives the right to participate in a new reservoir project at Wolcott, if all the parties, including Eagle County water users, agree it should be built. The settlement is considered a breakthrough in the stalemate between Denver and the West Slope over how to serve both fast-growing regions without harming streams or allowing chronic water shortages to develop. Denver Water is Colorado's largest water utility and serves 1.2 million people in the metro area. The agreement is important for the West Slope because it leaves much of the water in question in the river, a move that will ensure supplies for fast-growing Vail and other Eagle County communities.

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