Idealistically, this country should have a more standardised or regionally standardised approach to water issues. But, there aren't many subjects more politically charged and subject to local powers-that-be, or mired down in more B.S. than water usage and rights issues. As some of the double standard on usage rules explain above by other posters.
I was interested this last fall to note in my visit there that Holyoke is in deed constructing an out of sight water retention lake. They may be at the edge of the vast high plains aquifer, but they are prudently planning ahead for more drought (which has been on-going in the region for 4 years now). Sutton Bay, also has an out of sight water retention lake. There they sit above a vast water resource at Lake Oahe, but they need to take prudent insurance steps now.
Water retention ponds or lakes have been built in the last twenty or so years at many facilities that don't necessarily use that water reserve regularly, because drought conditions have put the squeeze on operations in recent years. Depending on the geographic region, a reserve of water in these ponds needs to be anywhere between a few to several days of the usual irrigation quantity per day.
I am quite supprised that there isn't a pretty large irrigation and flood water retention basin above Rustic Canyon. I wonder if Gil or Geoff might know something about that and comment if that were ever a local water management thought.
BTW, the high plains aquifer and ability to feed irrigators below and along the North Platte region is also interdependent on the resevoir health of Lake MacConeghy which relies on intermoutain accumulation and run off into the resevoir. Due to long term drought in that region, including in the mountains, the aquifer is down and the resevoir is at alarmingly low long term levels. A major user of that water is the largest coal fired electric generation in Sutherland, NE. They are in such desparate straights, that they had to dig 250 high cap wells around the plant, into the aquifer to make up for the low levels coming out of the lake. Thus, a several year moratorium in the two counties, Lincoln (North Platte) and Dawson, (Wild Horse) is now in effect and no more high capacity wells will be allowed for a while. Wild Horse and Sand Hills use gas turbine agricultural pivot pumps to put out about 1100 GPM which is adequate for their needs. Actually, the last I heard, Sand Hills has 3 separate pumping units.
They don't have 3-phase power to run the modern variable frequency pumps that are most efficient and powerfull enough to put out that kind of GPM, so the gas turbine ag pumps are their solution.
More than you needed to know... (waiver) possibly some of this is slightly in error due to my superficial knowledge....