N.M. Admin. Code § 19.26.2.18
An owner of a water right may lease all or any part of their right for a period not to exceed ten (10) years pursuant to Section 72-6-3 NMSA except that a water right may be leased for a period not to exceed forty years by a forty year planning entity as provided in Section 72-1-9 NMSA. Transfers of agricultural water to municipal/industrial use pursuant to Section 73-10-48 NMSA will be covered by rules and regulations promulgated pursuant to the statute. Prior to the use of water pursuant to a lease, if the proposed point of diversion or place or purpose of use differs from that of the owner's water right in any respect, a permit must be obtained from the state engineer for the term of the lease. The procedure for filing an application shall be the same as described in 19.26.2.11 NMAC. The amount of water that an owner/lessor may use during the term of a lease shall be reduced by the amount of water so leased. Upon termination of such a lease, the point of diversion and place and purpose of use subject to the lease shall revert to the owner's original point of diversion and place and purpose of use. Renewal of a lease shall require a new application, unless a longer period has been previously applied for, advertised, and approved by the state engineer.
N.M. Admin. Code § 19.26.2.18