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A proposed $4.3 billion residential development in Douglas County has been selected for the state’s first rainwater-harvesting project.

The Colorado Water Conservation Board voted unanimously Wednesday to allow the 3,400-acre Sterling Ranch to capture rainwater from storm-drainage systems and rooftops and recycle it to water the community’s lawns, gardens and open space.

Sterling Ranch already has a weather station in place that is monitoring weather and precipitation patterns, said Harold Smethills, managing director of Sterling Ranch. The next step is to put measuring devices in areas where water leaves the property to determine how much water Sterling Ranch is entitled to keep.

“We’re allowed to keep the water that never left the land,” he said.

When development of the property starts, expected in 2012, Smethills will install rainwater-capture systems.

Smethills estimates that at least half of Sterling Ranch’s outdoor irrigation demand can be met by capturing rainwater from storm-drainage systems and rooftops and recycling it to water the community’s lawns, gardens and open space.

Smethills was a key supporter of House Bill 1129, which allows 10 pilot residential developments to use rainwater-collection systems.

“There is only a limited amount of water to go around in the state, and if we want to make sure we have enough water to have a viable economy, we have to look at every option out there,” said state Sen. Ted Harvey, a Highlands Ranch Republican who co-sponsored the bill.

With minor exceptions, harvesting rainwater is not allowed under Colorado water law because water that falls in Colorado is already owned by someone downstream.

However, a 2007 study commissioned by the Water Conservation Board found that in northwest Doug las County, on average, just 3 percent of annual rainwater reaches a stream. The rest either evaporates or is used by vegetation.

When Sterling Ranch is built out in 20 years, it is expected to be home to 31,000 people living in 12,050 homes in villages that are surrounded by open space. Thirty-seven percent of the development is planned for open space, with 30 miles of trails for hiking, biking and horseback riding.

One-third of the property will be for housing, and the rest will be developed with retail and office space, schools and a sports village that will be home to Colorado Rush youth soccer and Slammers baseball.

Margaret Jackson: 303-954-1473 or mjackson@denverpost.com

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