---
kind: "section"
citation: "43 U.S.C. § 501"
title: "43"
title_heading: "Public Lands"
number: "501"
heading: "Disposition of profits of project taken over by water users"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/43/501"
units:
  - "Chapter 12 — Reclamation and Irrigation of Lands by Federal Government"
  - "Subchapter XI — Maintenance and Operation of Works Generally"
---

# §501. Disposition of profits of project taken over by water users


Whenever the water users take over the care, operation, and maintenance of a [project](/usc/43/485a.md?p=c), or a [division of a project](/usc/43/485a.md?p=h), the total accumulated net profits, as determined by the [Secretary](/usc/43/485a.md?p=b), derived from the operation of [project](/usc/43/485a.md?p=c) power plants, leasing of [project](/usc/43/485a.md?p=c) grazing and farm lands, and the sale or use of town sites shall be credited to the construction charge of the [project](/usc/43/485a.md?p=c), or a division thereof, and thereafter the net profits from such sources may be used by the water users to be credited annually, first, on account of [project](/usc/43/485a.md?p=c) construction charge, second, on account of [project](/usc/43/485a.md?p=c) operation and maintenance charge, and third, as the water users may direct. No distribution to individual water users shall be made out of any such profits before all obligations to the Government shall have been fully paid.


## Source credit

(Dec. 5, 1924, ch. 4, § 4, subsec. I, 43 Stat. 703.)

## Notes

### Statutory Notes and Related Subsidiaries

### Definitions

The definitions in section 371 of this title apply to this section.