Two major California water agencies have settled a dispute that once threatened to derail a multi-state agreement to protect the Colorado River. The Imperial Irrigation District is the largest, single recipient of Colorado River water. It sued the Metropolitan Water District twice in the past two years over water contributions and water storage. The entities announced Monday they have reached a settlement agreement. Under the agreement, Imperial can store water in Lake Mead under Metropolitan’s account. The irrigation district also will contribute water to a regional drought contingency plan if California is called on to help stave off further water cuts. The river serves 40 million people in Colorado, Wyoming, Utah, New Mexico, Arizona, California, Nevada and Mexico.