An act relating to the water rights of the Ak-Chin Indian Community.

(Measure passed Senate, amended)

Amends Federal law relating to the water rights of the Ak-Chin Indian community to direct the Secretary of the Interior (the Secretary) to deliver annually a permanent water supply to a certain part of the Ak-Chin Indian Reservation starting not later than January 1, 1988. Reduces the amount of such water supply from 85,000 to 75,000 acre-feet of surface water suitable for agricultural use.

Requires the Secretary to make additional deliveries of specified acre-feet of water as requested by the Community in any year in which sufficient surface water is available. Conditions such requirement upon the Secretary's determination that sufficient capacity is available for such additional delivery.

Specifies a minimum annual permanent water delivery in times of shortage.

Requires the Secretary to construct and maintain water delivery systems at no cost to the community.

Identifies the water sources from which the permanent water delivery shall be supplied. States that relative priorities which are senior to diversions for the Central Arizona Project among users in Arizona, Nevada and California shall not be affected by the Secretary's obligation to deliver to the Ak-Chin Reservation a permanent supply of 50,000 acre-feet of surface water per year.

Reduces the annual beneficial consumptive use of Colorado River water on the Yuma Mesa Division of the Gila project from 300,000 acre-feet to 250,000 acre-feet. Restricts the use of such water to the irrigation of 37,187 acres in the Yuma Mesa Division.

Requires the Secretary to pay specified sums for: (1) the repair and replacement of water delivery systems; and (2) on-farm water conservation and drainage measures. States that such funds shall not be used: (1) as supplemental or additional benefits; or (2) as non-Federal contributions in connection with other Federal programs requiring cost-sharing.

Directs the Secretary to amend certain repayment contracts in order to discharge repayment obligations owing to the United States on the date of enactment of this Act.

Details conditions under which the Secretary is required to pay damages measured by: (1) the costs of undelivered water; and (2) maintenance and replacement costs of on-reservation wells and of the Central Arizona project.

Restricts the permanent water supply to the exclusive use of the Ak-Chin Indian Community.

Authorizes the Secretary to allocate, on an interim basis, to the Central Arizona Project surplus water not required for delivery to the Ak-Chin Indian Reservation.

Deems the Secretary's obligation to deliver an interim water supply to the Community fully discharged upon: (1) provision of certain grants by the Secretary to the Community for economic development purposes and for agricultural development; (2) payment by the Secretary of the Treasury to the Community for general community purposes; and (3) amendment by the Secretary of certain repayment contracts to provide that all repayment obligations owing to the United States are discharged. Grants the Community full discretion over the use and expenditure of the funds provided for economic development and general community purposes.

Obligates the Secretary, upon failure to acquire a specified water supply, to: (1) make annual water deliveries to such Reservation; and (2) provide for permanent water delivery by January 1, 2003. Makes the United States liable for damages for failure to deliver such water.

Directs the Secretary to establish a water management plan for the Reservation.

Authorizes appropriations to a certain fund to be established by the Central Arizona Water Conservation District for use when water supplies are reduced. Conditions such appropriations upon matching contributions to the fund by such Conservation District.

Amends the Southern Arizona Water Rights Settlement Act of 1982 to subject the water rights of the Papago Indian Tribe to the statute of limitations imposed upon the United States for Federal actions brought on behalf of Indian claims.