Phoenix-area developers face new obstacles amid shifting water regulations as homebuilding demand grows - Phoenix Business Journal

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As the drought worsens, some say the lack of water in the far-reaches of the Valley could start to impact economic development. phoenix

As drought conditions worsen across the Southwest, some Valley homebuilders are running into problems securing a water supply for their projects.

ADWR's shift comes at a time when Colorado River reservoirs are dropping to critically low levels. On August 16, the Department of the Interior said Arizona and other states would face further cuts in 2023, putting more pressure on Valley municipalities — many of which have taken initial steps to preserve water or shift allocations — to grapple with potential shortages in the future.

"What that does is the Groundwater Management Act assures that our groundwater tables are going to be pumped dry," Kamps said."What we've ultimately done with the department's model is we're shutting down the one land use that actually saves groundwater and encourages the mining of groundwater.""Our water laws conflict dramatically with achieving that goal if for-sale housing is important to Arizona," he said.

"Although the model and model report have not yet been finalized, the department has information indicating that the proposed subdivision's estimated groundwater demand for 100 years is likely not met when considered with other existing uses and approved demands in the area," ADWR stated. Available groundwater supplies have been largely reserved for existing subdivision plats in other areas, so new plats may slow in those areas, said"Whether water is available for new development is a local question that may vary, depending on the location and water provider," she said.

 

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