William O. Douglas,
United States v. Gerlach Live Stock Company…
“ I conclude that Congress by § 8 of the Reclamation Act agreed to pay (though not required to do so by the Constitution) for water rights acquired under state law in navigable as well as nonnavigable streams. As the Court holds, respondents under California law have a water right. Section 8 therefore recognizes it as the basis for payment in connection with this federal project.I do not think the claimants are entitled to interest. When the Government assumes a liability by statute, interest is not allowable unless specific provision is made for it. ”
