The Rio Grande Compact is a legal agreement established in 1938 among the states of Colorado, New Mexico, and Texas, designed to allocate and manage the waters of the Rio Grande River. This compact was created to resolve water disputes and ensure equitable distribution of water resources among the states, recognizing the river's importance for agriculture, municipal use, and ecological balance. The compact has significant implications for water rights, interstate relations, and the management of a vital water source that supports diverse communities and ecosystems.