Not later than January first, nineteen hundred eighty-seven, the department of environmental conservation, with the participation of the department of health and whenever possible, regional planning and development boards, shall develop and submit a complete statewide water resources management strategy to the water resources planning council for its review and adoption. This strategy shall be composed of substate water resources management strategies which recognize the natural boundaries of the water resource basins, watersheds, and aquifers and existing significant deficiencies of water supply, and which organize these in the most practical and manageable manner. Each substate management strategy shall analyze the present and future demographic, natural resource, economic development, water quality, and conservation requirements of public and private water systems and develop regional management strategies to meet the water resources requirements of residential, agricultural, industrial and commercial users as well as assure the highest possible quality and quantity of these resources.

Strategies shall analyze the efficiency and capacity of existing water supply sources and facilities and shall contain recommendations for appropriate modifications, restoration, and expansion or development of new sources or facilities. Such strategies shall also include evaluations and recommendations as to the feasibility of including hydroelectric energy generation facilities as part of the modifications, restoration, and expansion or development of new or existing resources or facilities. The strategy shall also contain recommendations regarding implementation of these strategies by the department of health, the department of environmental conservation, other appropriate state agencies, local governments and special districts. In addition, the departments shall submit to the council substate water resources management strategies as soon as such strategies are developed. The departments shall also report regularly to the council on the development of the strategies and receive the council's recommendations and directions. Such substate strategies shall also be available for public inspection as soon as such strategies are developed.