After a quarter century of direct involvement in bringing water to the Brooks area and beginning the evolution of the arid prairie into a productive oasis-like region, the CPR divested itself of its holdings in the region. Global economic conditions in the early and mid-1930's had made earning a profit from the irrigation project unlikely. Operational costs were continuing to grow, and based on the conditions of the time, the CPR thought it best to abandon the project in favour of incurring increasing losses.

Farmers and ranchers who had settled in the region had, however, been converted in the long-term value of water in the region. They formed a water users group and commenced discussions with the CPR on taking over the Project. In April of 1935, these negotiations culminated in the administrative transfer of the CPR irrigation project to the Board of Trustees from amongst the water users and gave guidance about how land and water should be administered.

The CPR transferred almost all of their interest in the region to this newly formed "farmers cooperative". The ownership of the Irrigation system, unsold land within the region (almost 1,000,000 acres in 1935) and a cash reserve fund in the amount of $300,000 was provided to start the operations of the Eastern Irrigation District.