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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
for-sale housing; development; groundwater replenishment
Purpose
Declares that the members of the Legislature support the building of for-sale housing developments outside the service area of designated providers if the development is enrolled in the Central Arizona Groundwater Replenishment District (CAGRD) and replenishes groundwater as required by the Phoenix, Pinal and Tucson active management area (AMA) assured water supply rules.
Background
A person who proposes to offer subdivided lands for sale or lease in an AMA must apply for and obtain a certificate of assured water supply from the Director of the Arizona Department of Water Resources (ADWR) before presenting the plat for approval to the city, town or county in which the land is located and before filing with the State Real Estate Commissioner a notice of intention to offer such lands for sale or lease, unless the subdivider has obtained a written commitment of water service for the subdivision from a designated provider. A city, town or county may only approve a subdivision plat if the subdivider has obtained a certificate of assured water supply from the Director of ADWR or a written commitment of water service for the subdivision from a designated provider (A.R.S. § 45-576).
In 1993, the Arizona Legislature created the CAGRD to be operated by the Central Arizona Water Conservation District, for the purpose of providing a mechanism for landowners and water providers to demonstrate specified criteria required under assured water supply rules. The CAGRD must replenish, in each AMA, the amount of groundwater pumped by or delivered to its members which exceeds the pumping limitations imposed by the assured water supply rules in each AMA. Any city, town, water company or subdivision located in Pima, Pinal or Maricopa counties and in an AMA may join the CAGRD (CAGRD).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
· Declares that the Members of the Legislature support the building of for-sale housing developments outside the service area of designated providers if the development is enrolled in the CAGRD and replenishes groundwater as required by the Phoenix, Pinal and Tucson AMA assured water supply rules.
House Action
NREW 2/17/26 DP 6-2-0-2
3rd Read 2/26/26 31-23-6
Prepared by Senate Research
March 6, 2026
SB/SF/hk