Lake Powell, the second-largest reservoir in the United States, is experiencing a significant decline in tourism as ongoing water shortages continue to impact the region. Businesses that depend on water-based recreation have reported sharp decreases in customers, reflecting broader concerns over the reservoir’s shrinking water levels amid a prolonged drought.

Maxwell Lapekas, owner of Lake Powell Paddle Boards and Kayaks in Page, Arizona, said his daily customer numbers have dropped from as many as 150 to fewer than 40. The decrease in visitors has made it increasingly difficult for his business to maintain consistent work schedules for employees. Although the reservoir remains open to the public for boating and other water sports, the perception that water levels are too low to support such activities has deterred many potential visitors.

This downturn is part of a wider economic impact felt by businesses along the Colorado River and near the Arizona-Utah border as the region grapples with a severe drought, which scientists link in part to climate change. Lake Powell, formed by the Glen Canyon Dam, serves as a critical water and power source, supplying electricity to millions of homes in the Western United States.

In August, the reservoir reached its lowest recorded water level, heightening concerns over water security. In response, federal officials finalized significant reductions in the water allocations for Arizona, California, and Nevada, which draw from the Colorado River. These cuts are intended to address the long-term sustainability of the river system but have sparked uncertainty in communities that rely on its water both for agriculture and recreation.

While some local stakeholders suggest the drop in tourism is largely due to public misperception about conditions on Lake Powell, others emphasize the tangible effects of the water crisis on the availability and appeal of recreational activities. The situation underscores broader challenges faced by the Western United States as climate pressures strain vital water resources and the economies that depend on them.