Relating to cooperative water management plans.

Authorizes persons that hold water rights and other affected parties to develop, and Water Resources Department to approve, cooperative water management plans. Authorizes department to approve, as part of plan, pooling of water rights, implementation of alternative water management arrangements without need for certain individual applications or authorizations from department, banking of rights to surface or ground water and new water use authorizations. Requires that plans be sponsored by certain governmental entities. Provides that water rights subject to plan may not be subject to forfeiture for nonuse of water or cancellation for failure to meet permit requirements.