A bill to provide water to the Papago Tribe of Arizona and its members, to settle tribal and individual water rights claims in portions of the Papago reservations, and for other purposes.

Declares the intent of the United States to reach a reasonable resolution, without costly and lengthy litigation, of Papago Indian claims for water based upon U.S. failure to meet its trust responsibility.

Sets forth findings, purposes, and definitions under this Act.

Title I: Directs the Secretary of the Interior to deliver a firm water supply (an assured annual quantity of water suitable for agricultural use), commencing within ten years of the enactment of this Act, in specified quantities to: (1) the San Xavier Indian Reservation; (2) the Schuk Toak District of the Sells Papago Reservation; and (3) the Sif Oidak District of the Sells Papago Reservation (Chuichu area).

Authorizes the Secretary to enter into contracts or other agreements with the Papago Tribe for: (1) such deliveries; (2) construction, operation, and maintenance of appropriate facilities; and (3) in partial satisfaction of such water supply entitlements, an annual delivery of water in an agreed upon amount from a facility of the Central Arizona Project (with exchanges for water from other sources permissible).

Authorizes the Secretary to develop cooperatively with the Papago Tribe plans for full use and management of the respective entitlements. Requires that such plans be completed within 18 months and periodically modified thereafter.

Directs the Secretary to carry out appropriate engineering and hydrological studies. Authorizes appropriations to carry out such studies.

Directs the Secretary to acquire and deliver those portions of the respective water supply entitlements which are not provided from the Central Arizona Project entitlement portions.

Directs the Secretary, to the extent consistent with the respective plans, to: (1) improve and extend existing irrigation systems and, on condition that the Tribe or its members subjugate the land, construct additional works; and (2) require the Tribe or its members or a designated entity to assume responsibility for the operation and maintenance of such system.

Authorizes the Secretary to make loans to the Tribe for the subjugation of land and delivery of water.

Makes the Secretary's execution of such water supply contracts or arrangements conditional upon execution by the Papago Tribe of a waiver and release of any and all claims or future claims of water rights or injuries to water rights within specified areas which the Tribe has against the United States, the State of Arizona and its agencies and local governments, or any other person, corporation, or municipal corporation, arising under U.S. or Arizona law. Provides that: (1) no allotted lands within the San Xavier Reservation shall be entitled to such delivery of water unless and until the beneficial owners thereof agree to join in such waiver; (2) agreements to deliver water to the San Xavier Reservation shall not take effect until the Papago Tribe and allottee class representatives request dismissal of a specified lawsuit.

Directs the Secretary to complete a study within one year to determine which lands within the Gila Bend Reservation have been rendered unsuitable for agriculture because of the operation of the Painted Rock Dam. Authorizes the Secretary to exchange such lands for an equivalent acreage, of like quality but suitable for agriculture, within the Federal public domain. Authorizes appropriations for such purpose.

Title II: Authorizes the Secretary to develop and deliver unappropriated water or ground water (which is appurtenant to public lands and which, to the extent practicable, is not within an active management area) to lands within the San Xavier and Sells Papago Reservations.

Authorizes the Secretary, in order to supply water to the appropriate Papago reservations, to acquire, with the consent of the owner: (1) private lands having surface or ground water rights; (2) State water rights; or (3) alternative water supplies. Provides that such water may only be developed and delivered in compliance with specified provisions of the Arizona Ground Water Management Act. Declares that nothing in this title shall authorize the Secretary to acquire or disturb the water rights of any Indian tribe, band, group, or community, or any individual Indian allottees. Provides for the management of, and compensation for, lands or interests in lands acquired.

Requires that the contracts entered into under title I of this Act provide that the Papago Tribe or its members: (1) continue to be entitled to pump specified amounts of ground water from certain water basins; and (2) also be entitled to pump other specified amounts of ground water from such basins.

Authorizes the Secretary to provide to the Papago Tribe, in lieu of the water to which the Tribe is otherwise entitled under this Act, any Colorado River water which the State of Arizona receives in excess of its authorized amount.

Authorizes the Secretary, to facilitate water delivery under this Act, to: (1) enter into contracts for the exchange of water or for the use of water delivery facilities; and (2) use facilities constructed with Federal funds.

Directs the Secretary, upon the request of the Tribe, to carry out a study to determine water resources within the Sells Papago Reservation but outside specified water basins. Provides that any water developed from such underground sources shall not be credited against the water supply entitlement. Authorizes appropriations to carry out such study.

Sets forth the right of the Papago Tribe to devote the water supplies entitlement to any use. Prohibits the Tribe from permanently alienating any water right in absence of consent by the Secretary. Requires that any profit derived from the disposition of water from such entitlement shall first be used to pay principal and interest on loans made under this Act. Provides that water to which the Papago Tribe is entitled under this Act, with specified exceptions, shall be deemed to have been reserved or appropriated as of the date the reservation to which such water is delivered first was established.

Provides that specified contracts between the Secretary and the Papago Tribe shall be deemed to have been executed in compliance with the Colorado River Basin Project Act and the National Environmental Policy Act of 1969.

Authorizes appropriations to carry out this Act.