The Colorado River Basin (CORB) is an integral water source in the Southwestern United States. It supplies water to over 40 million people and irrigates approximately 5.5 million acres across the basin. This water system is currently under extreme stress due to an ongoing drought that has persisted since 2000. This historic drought is causing severe depletion of key reservoirs like Lake Powell and Lake Mead. This study evaluates how Colorado’s agricultural water demand, specifically for the livestock feed crops alfalfa and corn, impacts the Colorado River’s water levels alongside drought conditions. Using regression analysis and data over the period of time from 2000 to 2020, the study models the relationship between water demand as a function of crop-specific irrigation needs, temperature, precipitation, and water levels at Lake Powell against Colorado River levels. This study will highlight how water intensive alfalfa farming may exceed regional water supply, with corn presenting as a potentially more sustainable alternative due to its lower irrigation demand. The findings will also show the importance for adaptive agricultural practices and resource allocation. This will help to manage water security within the CORB as climate pressures intensify. This research provides information into balancing agricultural productivity with water sustainability in drought times for the CORB.