Obtaining Colonias Designation in New Mexico

Along the U.S.-Mexico border, hundreds of rural communities struggle with basic infrastructure needs: clean drinking water, adequate sewage systems, paved roads, and safe housing. For qualifying communities in New Mexico, a Colonia designation formally documents those conditions and can help communities compete for infrastructure funds. 

In practice, communities build a short record of need, secure local government action and then use that designation when applying to programs run by federal agencies, the North American Development Bank, or the state. The details matter, but the roadmap is consistent. Here are the core requirements and steps. 

1. Confirm the border and population criteria 

A community must be rural, have a population below 25,000, and lie within 150 miles of the U.S.-Mexico border. Provide a simple map showing the community’s location and boundaries. 

2. Show the community existed before 1989 

Proof might include older plats (a map showing divisions of land) or property records, historic aerial imagery, or other dated documents showing the settlement was generally recognized before that year.

3. Document the lack of basic infrastructure 

The community must lack basic water, sewer, adequate roads, drainage, or sanitary housing. The U.S. Department of Housing and Urban Development (HUD) definition can include dense settlements of modular housing or mobile homes when those patterns reflect substandard conditions tied to missing services. Counties may ask for objective documentation such as engineer letters, photos, or system reports. 

4. Obtain county or municipal approval by resolution 

County or municipal approval is necessary, typically by means of a resolution. Some jurisdictions will review supporting documentation first, then vote on the designation. 

5. Follow the right path for incorporated vs. unincorporated communities 

Incorporated communities with the ability to pass ordinances can pass an ordinance to self-designate, but the designation must be ratified by the county commission with jurisdiction. Unincorporated communities can pass a resolution expressing the desire to become designated. Without the ability to self-designate, the request must be elevated to the county commission, and it is up to the county to pass the ordinance establishing the designation—or not. 

6. Plan for different agencies, different processes 

Agencies apply different standards. The U.S. Department of Agriculture (USDA) can designate entire counties when more than 50% of the territory falls within the 150-mile border zone. The North American Development Bank, which administers U.S. Environmental Protection Agency (EPA) funds for Colonias, uses a different standard: 100 kilometers (about 62 miles) on either side of the border, since it funds infrastructure projects in both countries. If aiming for a specific program, confirm which definition and distance standard it uses before finalizing your paperwork. 

7. Put the right definition into the resolution 

Communities seeking USDA funding should include the agency’s Colonia definition in their resolution: 

“Colonia. Any identifiable community designated in writing by the State or county in which it is located; determined to be a Colonia on the basis of objective criteria including lack of potable water supply, lack of adequate sewage systems, and lack of decent, safe, and sanitary housing, inadequate roads and drainage; and existed and was generally recognized as a Colonia before Oct. 1, 1989.” 

To avoid limiting future options, additional language may be needed to meet requirements from HUD, the EPA, or state programs. 

Why the Designation Matters 

Federal programs allocate funding for Colonias annually, much of it through grants intended to improve infrastructure along the border. A designation can cover incorporated areas under a city’s jurisdiction and unincorporated areas under county jurisdiction, allowing communities to combine state and federal dollars. 

In New Mexico, Colonias generally fall into two types: designations that encompass an entire small town, and designations that apply to a subdivision such as a mobile home park or an area developed with a “Colonia homestead” pattern. The designation was created to address pre-1990s subdivision abuses, when developers exploited loopholes allowing land to be repeatedly split without requirements for utilities or roads. Those practices continued until the New Mexico attorney general and Doña Ana County filed lawsuits, and the New Mexico Legislature amended subdivision law to close the loopholes. 

In 2011, lawmakers passed the Colonias Infrastructure Act to direct financial resources toward designated communities. The legislation created the Colonias Infrastructure Board, which evaluates and prioritizes applications covering needs from engineering feasibility reports to the acquisition of land or water rights. 

Colonia status is not a guarantee of funding, but it is often the first step toward turning documented needs into eligible, fundable projects—and toward building the water, roads and housing systems that border residents deserve. 

This article was published with the support of USDA’s Water and Waste Facility Loans and Grants to Alleviate Health Risks for Colonias program, with funding from RCAP’s USDA Colonias 25 – 26 grant.