The United States state of Colorado is examining the possibility of implementing blockchain in water rights management. The corresponding bill was published on Colorado’s General Assembly website on Wednesday, Mar. 6.

Senator Jack Tate (R), together with representatives Jeni James Arndt (D) and Marc Catlin (R), have filed a bill that tasks the Colorado Water Institute at Colorado State University with studying the potential implementation of the technology to manage a database of water rights.

Moreover, the assembly wants to learn whether blockchain can be used to establish and operate water markets, water banks and contribute to the general administration of the resource.

To proceed with the experiment, the institute is allowed to seek and accept donations from both public and private sources. In case the institute fails to raise funds necessary for the trial, it will be cancelled, the bill states.

In February, IBM and sensor tech provider SweetSense partnered with non-profit organization The Freshwater Trust and the University of Colorado, Boulder to use blockchain and Internet of Things technology to sustainably manage groundwater. The trial will reportedly be conducted at one of the largest aquifers in North America, located in northern California's Sacramento-San Joaquin River Delta.

As Cointelegraph previously reported, the World Economic Forum (WEF) foundation found more than 65 blockchain use cases for solving the most problematic environmental challenges globally. The WEF foundation believes that the technology could completely transform the management of supply chains, decentralized energy and water systems, sustainable fundraising sources and carbon markets.