A Dream Dries Up in the Desert
In the sun-scorched fields of Belen, New Mexico, Pamela Craddock kneels in silence between the husks of her cannabis plants. A couple of years ago, she and her husband entered the recreational cannabis industry full of hope. Today, they walk away with $40,000 in debt and a barren half-acre farm overtaken by weeds.
The Craddocks are not alone. Across rural New Mexico, small-scale cannabis growers are facing an existential crisis. A new water policy, aimed at preventing illegal usage, has made it nearly impossible for growers without formal water rights to continue operations. And in a region already strangled by drought, that policy has become a death sentence for many farms.
Water Hauling Ban Shifts the Ground
When New Mexico legalized recreational cannabis in 2021, many early entrants relied on hauled water — transporting it from approved sources via tanker trucks. It was a practical solution in rural areas where access to direct water rights was limited or nonexistent.
But in early 2024, state regulators changed course. The Cannabis Control Division (CCD), in consultation with the Office of the State Engineer (OSE), moved to ban water hauling as a primary source for cultivation. The reason? Rampant abuses, including the theft of water from public ditches and rivers.
“Some people think just because they own land near a river, they have water rights. That’s not how it works in New Mexico,” said John Romero, head of the OSE’s Water Rights Division. “The legal framework here is complicated and rooted in history.”
A History Written in Water
Water rights in New Mexico are more than a legal technicality — they’re a cultural and historical battleground. The current system is an uneasy blend of Indigenous, Spanish colonial, and U.S. water law, where access to water is tightly regulated and extremely localized.
Add to that a multiyear legal battle with Texas and Colorado over the Rio Grande, and a persistent drought affecting 40% of the state, and the result is a regulatory environment that is both unforgiving and inflexible — particularly for small growers trying to comply.
“We Couldn’t Afford Water”
Pamela Craddock’s story is emblematic of the broader crisis. After learning that hauled water was no longer permitted, she was faced with a stark choice: invest thousands in water rights or let her crop die. Without any viable financial path forward, she chose the latter.
“I love those plants,” she said. “I have pictures of myself barefoot in the soil, cleaning the leaves by hand. Now it’s just dust and weeds.”
Their license expires in August. Until then, the Craddocks will try to sell the last 30 pounds of dried cannabis flower they managed to harvest before the policy shift.
Ripple Effects Across Rural New Mexico
The policy has sent shockwaves through New Mexico’s cannabis community, particularly among rural, independent farmers.
Arin Goold, owner of Mama and the Girls dispensary in Albuquerque and a farm in Estancia, said the new rules are already forcing many to shut down. Even she is unsure whether her farm, which relies on a long-term water supply contract with the Entranosa Water Association, is fully compliant under the revised rules.
“It has massive, sweeping implications,” she said.
One Grower’s Fight to Keep the Dream Alive
Thirty-six miles from the Arizona border, in the small community of Ramah, grower Matthew Brown is hanging on — just barely. He moved to New Mexico from Texas in 2017, drawn by the promise of a fresh, unsaturated cannabis market. His rainwater catchment system stores over 11,000 gallons, enough to sustain his modest operation. Or so he thought.
The OSE does not recognize rainwater collection as a primary water source. Brown obtained a one-year variance while he searches for water rights, but finding usable land nearby has proven nearly impossible, complicated further by the proximity to tribal jurisdictions.
“If they weren’t going to allow this, they shouldn’t have licensed us in the first place,” he said. “Now we’re three years in, and they flipped the script.”
Ironically, he notes, even if he does secure rights, he may never need to use them. “We’d have to fight for water we don’t actually use. That’s the crazy part.”
Regulators Offer a Narrow Escape Hatch
State officials say they aren’t trying to drive growers out of business — only to bring them into legal compliance.
“We’re not just cutting people off,” said Romero. “We’re offering temporary exemptions so they have time to adjust.”
So far, about 75 growers have applied for these exemptions, though many more are likely affected. Licenses are renewed on a rolling basis, and deadlines loom.
Still, for many like Craddock and Brown, the damage may already be done.
The Bigger Picture: Cannabis and Climate Collide
The water hauling ban is more than just a regulatory issue. It reflects a larger collision between two urgent realities: the promise of a booming cannabis industry and the limits of a drying landscape. As climate change intensifies, access to water will define who gets to grow and who doesn’t.
And while large operations with deep pockets might navigate these constraints, smaller, independent farms — often the most community-rooted and sustainable — are being left behind.
Related: How Global Cannabis Markets Are Facing Similar Pressures
New Mexico’s water crisis is just one example of how environmental and regulatory challenges are reshaping the cannabis industry worldwide. As growers across the globe adapt to shifting legal frameworks, climate stress, and market saturation, the balance between sustainability and profitability becomes increasingly difficult to strike. Learn more in our related coverage:
- Rwanda’s medical cannabis industry prepares for 2025 launch
- Canada-Thailand cannabis trade mission connects global producers
- Australian growers push for more support amid regulatory constraints
