California experienced severe water supply shortages in 2009, which led to economic disruption across the state, including concentrated losses in agricultural areas in the western portion of the Central Valley-areas already experiencing declines in the housing industry and the economic downturn in general. At the same time, several fish species whose habitat lie at the heart of California's water supply system and throughout its northern rivers are in decline and some face the possibility of extinction. This situation too has had economic implications, resulting in job and income losses in northern California. The short-term issue for Congress is how to evaluate demands for increasing water supplies that may help some users but may jeopardize the continued existence of several fish species. A longer-term issue for Congress is how to evaluate management alternatives that will protect species, but also help water users and economies that depend on reliable water supplies and healthy ecosystems.