Los Angeles, May 23 (IANS): Three US southwestern states have announced that they have struck a historic deal to cut billions of gallons of Colorado river water usage over the next four years, in an effort to ease crisis at the nation's largest reservoirs.

The three states, California, Arizona and Nevada, agreed to cut at least 3 million acre-feet of water through 2026, Xinhua news agency reported.

There are 40 million people, seven states, and 30 Tribal Nations who rely on the Colorado River Basin for basic services such as drinking water and electricity, according to a statement issued by the US Interior Department on Monday.

"Today's announcement is a testament to the Biden-Harris administration's commitment to working with states, Tribes and communities throughout the West to find consensus solutions in the face of climate change and sustained drought," said US Interior Department Secretary Deb Haaland in the statement.

The deal marks a major step after months of tense negotiations to save a crashing Colorado river system, which has shown alarming water loss in recent years after a multi-year drought collided with decades of overuse.