Taos Pueblo Indian Water Rights Settlement Act - Authorizes, ratifies, and confirms the Settlement Agreement of March 31, 2006, between the United States, the Taos Pueblo, New Mexico, the Taos Valley Acequia Association and its 55 member ditches, Taos, the El Prado Water and Sanitation District (EPWSD), and the 12 Taos area Mutual Domestic Water Consumers Associations.
Requires water rights to which the Taos Pueblo is entitled under the Partial Final Decree entered in New Mexico v. Abeyta and New Mexico v. Arellano to be held in trust by the United States.
Directs the Secretary to provide financial assistance to: (1) the Pueblo to construct, replace, or rehabilitate water infrastructure, to protect the environment associated with the Buffalo Pasture area, and to enhance watershed conditions; and (2) eligible non-Pueblo entites for mutual benefits projects in accordance with the Agreement.
Establishes in the Treasury a Taos Pueblo Water Development Fund.
Authorizes the Pueblo to market its water rights under the Agreement.
Directs the Secretary to enter into three repayment contracts by December 31, 2009, for the delivery of specified amounts of San Juan-Chama Project water to the Pueblo, the town of Taos, and EPWSD.