PHOENIX — A Native American tribe in Arizona reached a deal Thursday with the U.S. government not to use some of its Colorado River water rights in return for $150 million and funding for a pipeline project.

The $233 million pact with the Gila River Indian Community, announced in Phoenix, was hailed as an example of the kind of cooperation needed to rescue a river crucial to a massive agricultural industry and essential to more than 40 million people in seven Western U.S. states and Mexico. Officials termed it “compensated conservation.”

It’s part of a broader effort to get states that rely on the Colorado River to substantially lessen their water use amid an ongoing drought that has dramatically dried up reservoirs including Lake Mead behind Hoover Dam.

“Today’s announcements and our partnerships with tribes like the Gila River Indian Community prove that tribes are a key part of the solutions,” Deputy U.S. Secretary of the Interior Tommy Beaudreau said. “We don’t have any more important partners in this effort than in Indian Country.”

The federal government previously promised to use some $4 billion for drought relief, and Colorado River users have submitted proposals to get some of that money through actions like leaving fields unplanted. Some cities are ripping up thirsty decorative grass, and tribes and major water agencies have left some water in key reservoirs — either voluntarily or by mandate.