Arizona Approves Landmark Water Transfer for Urban Growth

Categories: Arizona Business NewsArizona State News

Visual representation of Arizona's landmark water transfer from rural to urban areas.

News Summary

Arizona has approved the first-ever legal transfer of water from its rural areas to support urban development in Buckeye and Queen Creek. The Department of Water Resources granted permits allowing Buckeye to withdraw 5,926 acre-feet and Queen Creek 5,000 acre-feet of water annually for residential growth. This decision follows past denials due to water shortages and raises concerns about long-term sustainability. While city officials celebrate the development, experts emphasize the need for comprehensive water management strategies amid ongoing shortages.

Arizona has made a pivotal decision regarding its water management practices with state water officials approving the first-ever legal transfer of water from rural regions to actively managed areas in an effort to support residential growth. This landmark decision was announced on July 18, 2025, allowing the cities of Buckeye and Queen Creek to withdraw substantial amounts of water from the Harquahala basin for residential development.

The Arizona Department of Water Resources (DWR) has granted Buckeye a permit to withdraw up to 5,926 acre-feet of water annually for a maximum of 110 years—enough to supply over 17,000 homes. Queen Creek has also received approval for a withdrawal of up to 5,000 acre-feet annually, supporting around 15,000 homes. This approval comes after a two-year period in which the DWR had denied permits for new subdivisions in both towns because there was insufficient water supply to meet the legally required availability for a hundred-year timeframe.

The DWR’s rejection of previous permits led the Home Builders Association of Central Arizona to file a lawsuit, arguing against the agency’s refusal on grounds of flawed water supply modeling. Despite the recent approvals, ongoing legal disputes are expected regarding the implementation of Arizona’s 1980 Groundwater Act, which is designed to regulate development based on available water resources.

Some critics, including Senate Minority Leader Priya Sundareshan, have raised concerns about the long-term sustainability of water transfers between regions. They argue that while this solution may address immediate needs, it does not tackle the broader issues tied to water resource allocation and sustainability. Sarah Porter, director of the Kyl Center for Water Policy, reinforced that although the water transfer to Buckeye and Queen Creek may alleviate some immediate concerns, it falls short of addressing Arizona’s long-term water supply challenges, particularly amid ongoing shortages from the Colorado River.

The Harquahala basin was set aside in the 1990s as a “groundwater savings account” to facilitate urban development, permitting legal transfers of water to areas designated for active management. With the DWR’s recent approvals, the Harquahala basin becomes the first to receive authorization for such transfers, highlighting its potential as a critical resource for urban growth in Arizona.

The total anticipated withdrawal from the Harquahala basin could exceed 1 million acre-feet over the 110-year period. Both Buckeye’s Mayor Eric Osborn and Queen Creek’s Mayor Julia Wheatley expressed their support for the development, underscoring its importance in diversifying and strengthening their water supply portfolios. Furthermore, landowners in the Harquahala Valley stand to benefit financially as agricultural water rights transition to serve urban developments.

Despite these advancements, state officials pointed out that the overall water usage resulting from these transfers will likely be slightly lower compared to if agricultural practices remained prevalent in the area. Nonetheless, implementing these transfers will necessitate advanced water treatment processes since the groundwater from Harquahala is deemed unsuitable for direct consumption without treatment. The infrastructure needed to transport this water efficiently from Harquahala Valley to cities like Buckeye and Queen Creek will involve significant investment.

This decision reflects Arizona’s ongoing efforts to adapt its water management strategies in the face of changing demographics and water availability. As cities continue to grow, balancing urban development with sustainable water use will be crucial for future planning and resource management. The implications of this water transfer could resonate throughout the state’s ongoing discussions about water sustainability and urban planning.