Both an Oklahoma district court judge and the 10th Circuit Court of Appeals rejected the water district's arguments that Oklahoma laws improperly interfere with interstate commerce.
The Tarrant Regional Water District wants to buy water from Oklahoma streams before they empty into the Red River that separates Oklahoma from Texas.
Once water enters the Red River, it becomes too salty to drink without expensive treatment.
Attorneys for the water district in their appeal to the Supreme Court said judges on the 10th Circuit Court of Appeals incorrectly interpreted the Red River Compact that governs the apportionment of stream water between Oklahoma, Texas, Arkansas and Louisiana.
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