November 7, 2025
Eyeing acreage around Redmond and wondering how water projects could impact value? You are not alone. With major canal piping underway and new tools for leasing and transfers, water access is reshaping what rural land can do and what buyers will pay. In this guide, you will learn what is changing, how it affects demand, and what to verify before you buy or sell. Let’s dive in.
Central Oregon Irrigation District (COID) serves much of the Redmond area through the Pilot Butte Canal. COID manages about 45,000 acres and more than 700 miles of canals, so upgrades here matter to local landowners. You can review the district’s scope on COID’s about page.
Significant piping is underway on the Pilot Butte Canal to cut seepage and improve delivery reliability. COID reports that Phase I immediately conserved about 30 cubic feet per second (cfs) and is expected to conserve an additional 30 to 40 cfs over time, with an estimated cost of about 30 million dollars. Recent federal funding has also supported this work, including a 25 million dollar boost announced in late 2024.
Partners in the Deschutes Basin modernization program highlight outcomes like reduced losses, more reliable deliveries, and more water left instream for habitat. For acreage owners, the practical takeaway is simple: piping can improve irrigation reliability and reduce uncertainty, which tends to support demand and pricing for irrigated parcels.
When an open canal near you is converted to pipe, several things can shift:
These changes affect how confidently you can plan irrigated pasture, small orchards, or crop rotations. They also influence how buyers compare an irrigated parcel to a dry one.
Oregon follows prior appropriation. Senior water rights are served first during shortages, and junior rights can be curtailed. That priority is a major factor in the long-term utility of any irrigated acreage.
Within the Deschutes Basin, Oregon law allows temporary transfers under ORS 540.585. In practice, this can enable short-term leasing or reallocation of water under specific conditions and is subject to anti-injury rules. The basin is also piloting a water bank to simplify voluntary leases and protect in-basin use, which may increase short-term flexibility for irrigators and interested buyers.
What this means for you:
A water right’s priority date, place of use, and appurtenancy matter as much as the acreage itself.
Temporary transfers can provide flexibility but do not change seniority.
District status, assessments, and delivery infrastructure influence ongoing costs and practical use.
Understand Oregon’s water-rights basics for the Deschutes Basin.
Review the statute that enables temporary transfers in the Deschutes.
Read about the Deschutes water bank’s goals and potential effects.
Statewide data show irrigated cropland values carry a premium over non-irrigated ground. In 2024, OSU reported Oregon’s irrigated cropland averaging about 7,650 dollars per acre, compared with a statewide farm real estate average of about 3,720 dollars per acre. Local values around Redmond vary by water reliability, location, improvements, and zoning.
County zoning shapes what a parcel can become. In Deschutes County, designations like EFU, RR-10, and MUA-10 come with different use and subdivision limits. Conversion from farm to residential or smaller lots is tightly controlled, especially on EFU land.
Opportunities
Risks
Water rights and delivery
Legal and zoning
Physical site and infrastructure
Financial
Useful resources
If you are selling, highlight the water-right details, delivery reliability, and any upgrades to on-farm infrastructure. If you are buying, weigh the right’s priority date, district status, and zoning just as heavily as acreage and views. A well-documented water profile can justify pricing and speed up escrow.
Have questions about a specific parcel’s water, zoning, or market positioning? Connect with Brent Krebs for local, hands-on guidance and a clear plan tailored to your goals.
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