Water rights is a huge deal in Colorado. It is in the state constitution and there has been a lot of government corruption around the issue.
It is common for people to buy up land just for the water rights, then transfer that water rights to other property. So if you search for land in Colorado it isn't unusually to find one plot of land in the millions and then another one a few miles away that is almost free in comparison. This is often due to the water rights associated with that property. The expensive land can be used commercially for things like farming, the other cannot.
And there have been cases of governments using tax money to buy up property just so they can use the water rights to help out private ventures, like building suburbs or golf courses without the knowledge or consent of tax payers.
Also it is pretty normal anywhere in the country that local governments react poorly from aggressive demands from people, especially when they are not voters.
All in all it is a nasty business and making sure you know exactly where your water is coming from, how you are going to pay for it, and what your rights are to it, and what you are allowed to use it for all need to be factored in heavily when moving out to the desert there.