As Colorado faces intensifying drought conditions and ongoing disputes over Colorado River water allocations, some Fort Collins businesses are already adjusting their operations and bracing for costs to rise.

Colorado River reservoirs have depeleted significantly in recent years, and negotiations over the Colorado River Compact have raised the possibility of mandatory cutbacks for Western states. For local businesses, that uncertainty is starting to feel closer to home.

From a College Avenue restaurant to a houseplant boutique and a horse boarding stable, local business owners said the effects of a prolonged water shortage are less about a single pressure point and more about a slow accumulation of consequences.

James Gurley, operations manager at Café Vino, a restaurant off College Avenue, said the restaurant’s biggest concerns aren’t immediate; they’re downstream.

“It’s the interconnectedness of everything,” Gurley said. “The things that could affect us, we wouldn’t know yet because it hasn’t really hit.”

He said a sustained drought could affect the availability of locally sourced produce if area farms face water allocation cuts, and utility costs may climb if the city pays more for water. Wildfire risk is another factor.

“If wildfires hit like they did a few years back, we would maybe have to shut down, or people wouldn’t want to sit outside,” Gurley said.

Those concerns extend to price increases on water-intensive crops, particularly ones sourced locally — something Gurley said would be a loss for a restaurant that values regional partnerships.

Gurley explained Café Vino already uses drought-tolerant landscaping, avoids grass and waters its herb garden only at night or in the early morning to reduce evaporation.

“We try to be fairly good stewards when it comes to our usage,” Gurley said.

Stem and Roots co-owner Korey Halligan said the Fort Collins houseplant vendor, which stocks between 400 and 700 plants at any given time, uses far less water than most people would expect.

The shop relies on bottom watering — placing pots in trays and letting plants absorb water from the bottom up — to eliminate waste.

“I could pour water into that bowl and let the plant soak up all that it needs over the course of 20 to 30 minutes,” Halligan said. “In my opinion, that means there’s zero wasted water dripping all over the floor.”

Soil choice plays a role, too. The shop uses a custom all-purpose blend formulated for water retention, which Halligan said gives thirstier plants the ability to go about a week between waterings. Using the right soil, he said, can mean the difference between a plant needing water every few days versus once a week.

Halligan said the techniques are something any Fort Collins resident can apply at home.

“I couldn’t stress enough how easy it can be to bottom water plants,” Halligan said. “You might be able to knock down three or four watering cans to one or two.”

For residents who want guidance, Halligan said they’re welcome to stop by the shop.

For Dawn Sykes, co-owner of Legacy Stables, a water shortage isn’t just an operational concern — it’s a safety one. Horses can drink up to 20 gallons of water per day, and dehydration can lead to impaction colic: a potentially fatal digestive condition.

“You can’t minimize how much horses drink,” Sykes said. “That we can’t control very well.”

The financial pressures extend beyond the water bill. Sykes said she purchases all of her hay off the property, leaving her dependent on her supplier when drought drives up prices.

“It’s hard to prepare for what hay is going to cost you,” Sykes said. “You’re pretty much at the mercy of your hay supplier.”

Sykes said she’s fortunate to have worked with the same supplier for 10 years but noted that not everyone in the horse industry is as lucky, and some suppliers take advantage during shortages.

To reduce evaporation from unused automatic waterers, the stables place large rubber balls over the openings. Sykes said she has stopped watering her pasture entirely this year and is running just enough water on her front lawn to keep the roots alive.

“My front lawn is pretty darn brown,” Sykes said.

Several years ago, Sykes introduced a $2.50 fee for boarders using the wash rack after witnessing chronic water waste.

“This isn’t about me making money at $2.50 a horse,” Sykes said. “This is about making (customers) think about (their) water usage.”

She said she has also chosen not to draw from an agricultural well on the property, despite having the option.

“If I take it out of the ground at my well head, what I’m doing is depleting an aquifer,” Sykes said. “And that doesn’t make sense.”

None of the three businesses expect their water to be shut off outright, but all anticipate higher costs and more complicated supply chains as conditions persist. For now, each is watching the season closely — monitoring water bills, fire forecasts and what their suppliers are charging.

“It’ll affect us in a lot of the same ways it affects the community,” Gurley said.

Reach Maci Lesh at life@collegian.com or on social media @RMCollegian.