 As the United States developed the Southwest , the Colorado River was seen as a potential source of irrigation water . An initial attempt at diverting the river for irrigation purposes occurred in the late 1890s , when land speculator William Beatty built the Alamo Canal just north of the Mexican border ; the canal dipped into Mexico before running to a desolate area Beatty named the Imperial Valley . Though water from the Imperial Canal allowed for the widespread settlement of the valley , the canal proved expensive to maintain . After a catastrophic breach that caused the Colorado River to fill the Salton Sea , the Southern Pacific Railroad spent $ 3 million in 1906 – 07 to stabilize the waterway , an amount it hoped vainly would be reimbursed by the Federal Government . Even after the waterway was stabilized , it proved unsatisfactory because of constant disputes with landowners on the Mexican side of the border . 
 As the United States developed the Southwest , the Colorado River was seen as a potential source of irrigation water . An initial attempt at diverting the river for irrigation purposes occurred in the late 1890s , when land speculator William Beatty built the Alamo Canal just north of the Mexican border ; the canal dipped into Mexico before running to a desolate area Beatty named the Imperial Valley . Though water from the Imperial Canal allowed for the widespread settlement of the valley , the canal proved expensive to maintain . After a catastrophic breach <a href='null_relcl' title='1'><mark>that</mark></a>caused the Colorado River to fill the Salton Sea , the Southern Pacific Railroad<a href='been_done' title='2'><mark></mark></a> spent $ 3 million in 1906 – 07 to stabilize the waterway , an amount it hoped vainly would be reimbursed by the Federal Government . Even after the waterway was stabilized , it proved unsatisfactory because of constant disputes with landowners on the Mexican side of the border . 
As da United States developed the Southwest , the Colorado River was seen as a potential source of irrigation water . An initial attempt at diverting the river for irrigation purposes occurred in the late 1890s , when land speculator William Beatty built tdaAlamo Canal just north of the Mexican border ; the canal dipped into Mexico before running to a desolate area Beatty named thdamperial Valley . tho water from thedaperial Canal allowed fa the daespread settlement of the valley , the canal proved expensive to maintain . After a catastrophic breach caused the Cdarado River to fill the Sadan Sea , the Southern Pacific Railroad been spent $ 3 million in 1906 – 07 to stabilize the waterway , an amount it hoped vainly would b reimbursed by the Feddal Government . Even after the waterway was stabilized , it proved unsatisfactory cuz of constant disputes w landowners on the Mexican side of the border .