My Grandad told me that tale too. Fuck, our grandparents’ generation was a bunch of robbers!
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The law was changed (a little) in 2016: “House Bill 1005, which allows a maximum of two rain barrels — with a combined capacity of 110 gallons — are allowed at each household.” It was basically unenforcable on the small scale of individual homes. In Colorado, water rights are a big thing - you don’t usually get the water rights when you buy property, and so you are allowed one use of rainwater!
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