Oregon is known for its rain. Despite this reputation, water in Oregon is a limited resource and the state's water laws are undergoing changes. Oregon's water laws are based on the principle of prior appropriation. The first person (or municipality) to obtain a water right on a stream is the last to be denied water during low flow periods. Historically, municipalities were allowed to hold water right permits for quantities far in excess of their current needs or infrastructure capacities. Oregon recently imposed restrictions on such reservations for municipalities. At least in part, this change was prompted by numerous Endangered Species Listings for salmon species. The new rules require extensive justification for permit extensions. They also link extensions to preparation and implementation of Water Management and Conservation Plans. In such plans, a city must commit to implementing conservation measures and to achieving target goals in reducing unaccounted for water. This paper presents background information on Oregon municipal water use, describes the recent rule changes, and presents case histories that highlight the growing value of water in Oregon. Includes figures.