Controversy Over Water Sales
In recent years Hugo Lake has been in the middle of a controversy regarding out-of-state water sales between Texas and Oklahoma. The city of Hugo had sought to sell water to the growing suburbs of Dallas that need new sources of water to pay debts related to the lake. Irving, Texas has entered negotiations with the Hugo to obtain a supply of fresh water by building a pipeline and purchasing excess water from Hugo Lake. In 2002 the Oklahoma state legislature passed a moratorium on water sales outside the state. Hugo sued the state in federal court citing that the state's moratorium is unconstitutional.
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