KEY POINTS
  • Federal officials on Monday ordered the first-ever water cuts for the Colorado River Basin amid a historic drought.
  • The Colorado River supplies water and power for more than 40 million people.
  • Arizona will take the biggest hit, with 18% of the state's annual apportionment cut.

The U.S. government on Monday declared the first-ever water shortage at Lake Mead, the nation's largest reservoir by volume, after water levels fell to record lows amid a decades-long drought.

Water cuts will go into effect in January for Arizona, Nevada and Mexico, the Bureau of Reclamation said Monday. Arizona will take the biggest hit, with about 18% of the state's annual apportionment cut.