RWAPA was founded in 1981 by the City of Aspen and Pitkin County to pursue development of hydropower resources at Ruedi Reservoir.

Members include Aspen, Carbondale, Basalt, Glenwood Springs, Snowmass Village, Pitkin County, Eagle County and Garfield County. Although Aspen and Pitkin County eventually carried out hydropower development themselves, the communication and cooperation that had been fostered by the Authority had taken hold and the member entities determined to stay together to represent local governments in matters relating to Ruedi Reservoir and the Fryingpan River. Even then, Ruedi and the Fryingpan were recognized as significant recreational and environmental resources for the Roaring Fork Valley.