In New Mexico our water is fully allocated and so future oil and gas production must adapt to shortages and extreme events like drought, catastrophic flooding, and ground-water depletion. Some options to explore include alternative water resources (recycled produced water and brackish water) for oil and gas production, and for other uses as a substitute for fresh water. Incorporating the cost of infrastructure adaptation into oil and gas production is an ongoing process requiring investment and innovation. I will review some of the activities that have occurred in South Eastern New Mexico over the last few years related to produced water recycling and treatment, and work being done to map, quantify, and qualify produced water occurrence in the region for future uses within and outside of the industry. Finally I will discuss some of the recent regulatory changes intended to encourage produced water recycling and reuse.