John Flesher, THE ASSOCIATED PRESS

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TRAVERSE CITY, Mich. - Great Lakes water cannot be diverted to thirsty areas elsewhere in the United States and abroad under an agreement signed Friday by U.S. President George W. Bush.

Approval of the Great Lakes Compact was the final step in a nearly decade-long quest to strengthen legal protections for the five Great Lakes, their connecting channels and the St. Lawrence River.

It received bipartisan support and the backing of business and environmental groups and both presidential candidates.

It bans new diversions of water to places outside the region - eight states along with Quebec and Ontario with a combined population of roughly 40 million.

There are limited exceptions for communities near the basin boundary that meet rigorous requirements and for the taking of water in small containers.

The deal was negotiated by the governors in all eight states - New York, Pennsylvania, Ohio, Michigan, Indiana, Illinois, Wisconsin and Minnesota. Congress recently gave its approval. Ontario and Quebec adopted similar policies.

The pact "will provide sustainable use and responsible management of waters from the Great Lakes Basin and will preserve the Great Lakes for the benefit and enjoyment of present and future generations," said James L. Connaughton, chairman of the White House Council on Environmental Quality.

"Together, we have taken a major step to protect the Great Lakes," said Wisconsin Gov. Jim Doyle, chairman of the Council of Great Lakes Governors. "I am hopeful that this historic co-operation will enable us to accelerate our future efforts."

The Great Lakes contain nearly 20 per cent of the world's fresh surface water. Compact supporters long have voiced concern that arid regions such as the western U.S. would target the lakes as the Sun Belt's population and political clout grew.

The United Nations estimates that by 2025, two-thirds of the world's population will lack ready access to clean, fresh water.

An Ontario consulting firm's 1998 proposal to ship 598 million litres of Lake Superior water per year to Asia inspired negotiations leading to the pact. A permit issued to the firm was withdrawn before the water was taken.

Despite compact supporters' worries, legislators from Sun Belt states mounted no resistance as it gained speedy approval from Congress.

But some environmentalists questioned whether it was strong enough, focusing on a provision allowing diversions of water in containers smaller than 21.5 litres, designed to accommodate bottled water companies. Supporters said the deal's protections were adequate.

The next step for the Great Lakes states is setting up programs to manage and conserve water, as the compact requires them to do within two years.

It sets common standards but gives the states flexibility in meeting them. Progress toward meeting regional goals will be reviewed every five years. A state accused of failing to comply could be sued if mediation produced no settlement.

"It's important to note that the compact doesn't specifically manage and regulate the Great Lakes - it only sets the stage for it to happen," said Rich Bowman The Nature Conservancy's regional office.