Two potential projects in Washington are examined for their secondary impacts on the economy of the state. A major impact of these projects is to increase the energy costs to regional power consumers. After accounting for the negative impacts of rising energy costs, the long run state level residual income increases by $209 million after irrigating an additional 700,000acres. The distribution of potential benefits is uneven among sectors of the economy and some sectors will possibly experience substantial decreases in returns to stockholder equity as a result of irrigation expansion.