New Details Behind Water Crisis This MT Region is Facing

BUTTE, MT - In the quiet, countryside heart of Shields Valley—just north of Livingston, Montana—a new kind of land dispute is about to boil over, as reported in a new article by Amanda Eggert with Montana Free Press.

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It’s not about cattle, crops, or even property lines. It’s about water.

And it’s pitting multi-generational ranchers against the developers of an elite golf course tied to the ultra-exclusive Yellowstone Club.

At the center of the storm is Crazy Mountain Ranch, an 18,000-acre spread that was once known as the Marlboro Ranch. Purchased in 2021 by CrossHarbor Capital Partners—the same group behind the glitzy enclaves of Big Sky—Crazy Mountain Ranch is now under fire for allegedly diverting water from Rock Creek to irrigate a luxury golf course without proper state approval.

From Promises to the Pipes

Local rancher Tim Sundling, whose family has worked Shields Valley land for generations, was one of many invited to a 2024 meeting at Crazy Mountain Ranch.

He recalls developers insisting the ranch would remain agricultural with minimal community impact.

They mentioned the possibility of a golf course—but assured locals it wouldn’t mirror the ultra-wealthy vibe of Big Sky’s Yellowstone Club.

“Looking back, it was just propaganda to keep us quiet,” Sundling said to MTFP.

Five months later, truckloads of sod were being hauled in and new irrigation pipes laid across the property. That’s when Sundling—and fellow rancher Phil Gilbert—knew something was off.

The state’s Department of Natural Resources and Conservation (DNRC) had not approved the required water right changes, a legal prerequisite for altering the location or manner in which water is used.

Gilbert filed objections to the ranch’s water change applications, claiming they were seeking more water than had ever been historically used. Crazy Mountain Ranch eventually withdrew two of those applications—but continued irrigating the golf course anyway.

‘A Big, Serious Problem’

“They’re putting this water into a pipe and taking it clear out of the [Rock Creek] system,” Gilbert said to MTFP. “Not only are water users impacted, but all aquatic life is impacted. When those ponds and wetlands dry up, it’s a big, serious problem.”

Though the ranch has denied diverting water from any other user, they’ve not explicitly confirmed whether irrigation has continued into the 2025 season.

Gilbert remains convinced they’re operating outside the law—and outside of trust.

“They already showed us that we can’t trust them,” he said again to MTFP. “This is our livelihood. And they want to have their, I don’t know what—three months of fun up there on a golf course.”

Montana’s Water Problem: No ‘Water Police’

Attorney Graham Coppes, a water law expert, says this situation is unfortunately common.

Montana’s water rights system is mostly enforced by local users—not the state.

“Illegal water use happens every day in every corner of Montana,” Coppes said to MTFP. “We do not have a water police.”

Coppes argues that the DNRC has become bogged down in paperwork while turning a blind eye to illegal withdrawals. Even when residents file what’s known as a Form 609—a formal complaint of water misuse—the response is often vague or nonexistent.

DNRC confirmed it has received such complaints regarding Crazy Mountain Ranch but declined to elaborate, citing an ongoing investigation.

Meanwhile, water users like Scott Knutson of Shields Valley Land and Cattle are demanding accountability. “CMR should be held to the same rules as every other irrigator in the state,” Knutson wrote in his petition.

The Coming 'Shakedown'

One person who’s gearing up for a fight is Rich Sarrazin, the local water commissioner—or as some call him, the “ditch rider.”

Sarrazin’s job is to ensure every water user stays within their legal allotment. He anticipates a heated summer.

“Everything will be shut down going to Rainbow Lake and to the golf course,” Sarrazin said to MTFP. “That’s my job. I gotta do the dirty work.”

He’s coordinating with a district court judge and is prepared to bring in law enforcement if necessary. “It’s going to be a shakedown this year,” he said. “Everybody better get on board.”

Culture at Risk

Livingston resident and community advocate Keegan Nashan is deeply concerned about what’s at stake. She’s been digging into Crazy Mountain Ranch’s development plans and lobbying local boards and officials for transparency.

“If they eat the Shields Valley the way they ate Big Sky, I don’t think I could live with myself,” Nashan said to MTFP. “This is their portfolio,” she added, referring to local ranchers. “For the wealthy, it’s just one of many.”

She fears that the privately managed fire departments, roads, and utilities popping up on the ranch are signals that the developers plan to disconnect from public systems—and the community itself.

A Larger Reckoning

The golf course fight is about more than turf grass and tee boxes. It’s exposing cracks in Montana’s water management system, especially as climate change tightens water supplies and luxury development spreads into rural areas.

“This isn’t the Old West anymore,” Coppes said. “There’s too much demand for water, and not enough of it. DNRC has the authority to regulate all this—but they refuse to use it.”

For now, all eyes in Shields Valley are on Crazy Mountain Ranch—and on whether the law will catch up to the green.