The Water Conservancy Act of 1937 authorized Colorado Water Conservancy Districts, of which the San Juan Water Conservancy District (SJWCD or District) is one of 46 in the State of Colorado. Conservancy Districts are local entities of State government. As such, they have taxing power. Subject to voter approval and within prescribed limitations, they may acquire and sell water, construct water resource projects, and in general do everything necessary to provide adequate water supplies for the area served.

Local voter approval established the San Juan Water Conservancy District in 1987 in accordance with C.R.S., sections 37-45-109 (2.5) and 37-45-139 to 37-45-141 and the general election laws of the state of Colorado. The SJWCD is a political subdivision of the State of Colorado and a body corporate with all the powers of a public or municipal corporation as authorized by the statutes of the State of Colorado under C.R.S., section 37-45-010 et seq.

The District includes much of Archuleta County, including the Town of Pagosa Springs and the majority of the Pagosa Area Water and Sanitation District (PAWSD) service area.