A simmering feud over management of one of North America’s longest rivers reached a boiling point when the U.S. Supreme Court sent western states and the federal government back to the negotiating table last year.

Now the battle over waters of the Rio Grande could be nearing resolution as New Mexico, Texas and Colorado announced fresh settlement proposals Friday designed to rein in groundwater pumping along the river in New Mexico and ensure enough river water reliably makes it to Texas.

New Mexico officials say the agreements allow water conservation decisions to be made locally while avoiding a doomsday scenario of billion-dollar payouts on water shortfalls.

Farmers in southern New Mexico increasingly have turned to groundwater as hotter and drier conditions reduced river flows and storage. That pumping is what prompted Texas to sue, claiming the practice was cutting into water deliveries.

It will be up to the special master overseeing the case to make a recommendation to the Supreme Court.