THE PROBLEMS RAISED HERE CENTER ON SECTION 8 OF RECLAMATION ACT OF 1902. THIS SECTION DELINEATES THE RIGHTS RESERVED TO THE STATES WHERE A FEDERAL RECLAMATION PROGRAM IS IN FORCE. SECTION 8 WAS ORIGINALLY INTERPRETED TO PLACE STATE LAW ABOVE FEDERAL LAW WHENEVER A CONFLICT OCCURRED. RECENT CASES INDICATE BY DICTA THAT THE SECTION NOW SHOULD BE READ SO AS TO GIVE STATE LAW PRIORITY ONLY IN SITUATIONS CONCERNING COMPENSATION FOR THE LOSS OF PRIVATE PROPERTY RIGHTS. BRIEF ATTENTION IS PAID TO VARIOUS LEGISLATION SUCH AS THE BOULDER CANYON PROJECT ACT, THE WARREN ACT, THE RECLAMATION EXTENSION ACT, AND THE FRYINGPAN-ARKANSAS PROJECT LAW. EXTENSIVE ANALYSIS OF THE LEGISLATIVE HISTORY OF THE RECLAMATION ACT IS PROVIDED. THE ROLE OF THE DEPT. OF INTERIOR IN THE AREA OF RECREATION IN WATER AREAS IS DISCUSSED, WITH A CONCLUSION THAT IT WILL PLAY A QUITE ACTIVE ROLE BOTH IN POLICY PLANNING AND ADMINISTRATION. THE RELATIONSHIP BETWEEN THE RECLAMATION ACTS AND FEDERAL FARM POLICY IS DISCUSSED WITH THE CONCLUSION BEING THAT CONGRESS INTENDED TO UTILIZE THE RECLAMATION LAWS TO PROMOTE FARM POLICY.