Built as part of the larger Colorado River Compact of 1922, several political groups, their members and privately owned utility companies in Arizona were not pleased with the plan in general and refused to sign it until 1944.

Even then Arizona continued to dispute its water allotments until a 1963 Supreme Court decision settled the issue.

Arizona Attorney General Arthur La Prade concluded that the Metropolitan Water District had no right to build on Arizona's territory, which prompted Governor Moeur to send a larger National Guard force to halt construction.

The troops were recalled when Secretary of the Interior Harold L. Ickes halted construction until the issue had been settled.

[8] Arizona eventually agreed to allow the dam in exchange for approval of the Gila River irrigation project.