Arizona is taking a significant step in housing and water resource management under a new law signed by Governor Katie Hobbs. This law is designed to bolster the state’s housing availability while addressing groundwater conservation issues.
Referred to as the “ag-to-urban” bill, Senate Bill 1611 permits housing developers to acquire groundwater rights from farmers in the metro Phoenix area and Pinal County. These farmers can sell their water rights if they convert their agricultural land for housing development.
The shift from farming to housing is expected to significantly reduce water usage, as the new homes will consume much less water than the farms previously did. This bill emerged after years of bipartisan negotiation and is hailed by supporters as a mutually beneficial arrangement.
State Senator T.J. Shope, who sponsored the bill, regards it as the most impactful water legislation in recent decades. However, the bill faced some bipartisan resistance, with certain lawmakers expressing disappointment over the Legislature’s inability to address other pressing matters, such as rural groundwater conservation.
Representative Chris Mathis criticized the lack of legislative action, stating, “We have once again failed to provide any legislative relief this session to address the current acute water security crisis faced by our rural communities.” Meanwhile, Governor Hobbs had previously introduced a rural groundwater management plan, which did not progress in the GOP-majority Legislature.
Governor Hobbs emphasized the importance of the bill, stating, “I am proud to have brokered a bipartisan, historic water deal that will save millions of acre-feet of water, help lower the cost of housing, and create jobs. Arizona has long led the country in water management, and today we have shown that we will continue this legacy of addressing our most pressing challenges. But we aren’t done taking action. I will continue fighting to protect groundwater in rural Arizona so every community throughout our state will know they have the tools they need to secure their water future.”
The legislation was driven by a housing construction halt initiated by Governor Hobbs in Phoenix’s suburbs, due to dwindling groundwater levels. The new law provides developers a viable option to pursue housing projects in these previously restricted zones.
Although Hobbs anticipates that the law could result in the development of tens of thousands of new homes and save up to 10 million acre-feet of water, the program’s voluntary nature for farmers leaves its ultimate impact uncertain.
