A company in Arizona wanted to pump Arizonan water across the state border to a new development in Southern Nevada. Both states are water scarce states, in fact the whole US South-West is in permanent water scarcity.

An administrative law judge has recommended that the transfer of water be denied [pdf]. IIRC from what I heard on the radio this morning, there is some 1970s law which has never been used before which stops that kind of water transfer. The local Arizonan residents are concerned as the water is from an aquifer and they are worried it would leave their wells dry.

From the decision:

The ADWR staff is recommending that the Director deny Wind River's Application because it is inaccurate in certain respects, and because ADWR determined that Wind River did not submit studies that are satisfactory to determine the probable hydrologic impact on the Mormon Wells area.

The objections are mainly administrative. There is also a history of cross border co-operation for what are largely arbitrary state political boundaries.
Cam Riley: South Sea Republic. Freedom, liberty, equity and an Australian Republic.