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RE: We are starting a homestead #3.
Southwest here as well. We have lots of water..both wells and ditches. We are not off grid so domestic is fine. We fight for the acequia water to irrigate. good job getting the swales going.
We have county water at the road but it's a huge pay in to connect. About 6K. Then we have to pipe it to the house site. Another couple grand. I think I can build a hell of a sustainable catchment and swale system for that much $.