A bill to amend and supplement the acreage limitation and residency provisions of the Federal Reclamation law, as amended and supplemented, and for other purposes.

Title I: Reclamation Reform - Repeals residency requirements of a prior Federal reclamation law and allows the availability of irrigation water to project lands whether or not owners or operators live on or near such lands.

Directs the Secretary of the Interior, upon the request of any district, to complete land classifications for such district prior to the enforcement of any acreage limitation within such district.

Requires owners of excess lands to execute a recordable contract with the Secretary for the disposal of such lands before irrigation water may be made available to them.

Exempts lands receiving benefits from Federal water resources projects constructed by the Army Corps of Engineers from acreage limitation requirements or other provisions of reclamation laws, unless specifically made applicable by statute or pursuant to the authority of the Secretary.

Provides that lands which are leased shall not be subject to the application of acreage limitation provisions of Federal reclamation laws.

Exempts from limitations and restrictions of reclamation laws: (1) any district which has repaid the construction costs of water project facilities; (2) bona fide religious or charitable organizations using the agricultural produce for charitable purposes; (3) lands held by a trustee in a fiduciary capacity for beneficiaries whose interest in such lands are within limits imposed by reclamation laws; (4) lands which receive a temporary supply of water; (5) lands acquired by involuntary foreclosure, bona fide conveyance in satisfaction of mortgage, inheritance, or devise, which are eligible for a temporary supply of water not exceeding five years; (6) isolated tracts which are economically farmable only if included in a larger farming operation; and (7) lands served with a temporary supply of water under contracts permitting later use of such water for municipal or industrial purposes.

Requires payment contracts for the use of irrigation water temporarily made available from reclamation facilities in excess of ordinary quantities not otherwise storable for project purposes or not otherwise available without such facilities.

Provides a procedure for the validation of any contract provision between the Secretary and any party pursuant to matters arising under reclamation laws.

Vests exclusive jurisdiction in the United States district court for the district in which a project facility is located for injunctive relief sought under contracts between any non-Federal party and the Secretary relative to water service.

Authorizes appropriations as necessary to carry out provisions of this Act.

Title II: Optional Expanded Ownership - Authorizes the amendment of water contracts between the Secretary and any non-Federal party to conform to provisions of this Act and after such amendment, limits the delivery of water for irrigation purposes to 960 acres of class I lands. Allows the delivery of water in excess of such acreage upon payment by recipients of the full cost of such excess water.