The U.S. Supreme Court case California Oregon Power Co. v. Beaver Portland Cement Co., et al., in 1934, revolved around the rights to use water from the Rogue River in Oregon for power generation purposes. The dispute was between California Oregon Power Company (COPCO) and Beaver Portland Cement Company over who had priority of right to use the river's waters under federal law - COPCO claimed it based on a 1905 Act while Beaver asserted its claim through an earlier state-granted permit but with later development than COPCO’s project. The court ruled that although both parties were entitled to use the water, precedence should be given according to who put it into beneficial use first rather than who obtained legal permission first – thus favoring COPCO as they developed their hydroelectric plant before Beaver began using water for cement production despite having an earlier permit date. This decision established important precedent regarding appropriation doctrine or "first in time, first in right" principle which prioritizes actual usage over mere legal entitlements when dealing with natural resources like water.

In the dissenting opinion for California Oregon Power Co. v. Beaver Portland Cement Co., Justice McReynolds disagreed with the majority's interpretation of "navigable waters" and its application to water rights, arguing that it was too broad and inconsistent with previous rulings. He contended that a stream should only be considered navigable if it is used or can be made usable for trade or travel in its ordinary condition, not when artificial aids are required to make it so. In his view, this would mean that Rogue River (the river at issue in this case) was non-navigable above Big Butte Creek because there were no historical records indicating commercial navigation above this point without substantial artificial aid such as dams or locks. Therefore, he believed the plaintiff had valid riparian rights under state law which allowed them to divert water from the river for their own use without federal interference.