Arizona Restricts Home Construction in Phoenix Area Amid Lack of Groundwater

Pressures on water supply around Arizona, along with an ongoing megadrought made worse by climate change, have been addressed by recent limits placed on the construction of new homes around Phoenix. The restrictions are meant to limit projects that would rely on groundwater, as the groundwater supply is already needed by existing properties.

Most of Arizona’s water, around 41%, comes from groundwater, according to the Arizona Department of Water Resources. Another 36% comes from the Colorado River, although the state, along with California and Nevada, recently agreed to reduce their water intake from the river by 3 million acre-feet through 2026 as the Colorado River faces shortages.

Water demand is expected to outpace supply in the Phoenix area. A recent analysis over a 100-year period found that about 4% of groundwater demand around Phoenix will not be met, unless additional actions are taken. This prompted the Arizona Department of Water Resources to deny additional Assured Water Supply Program certificates for new home construction projects around Phoenix to preserve water for existing properties.

“We have these rules in place to protect people from buying a home without a water supply, so that’s really the effect here,” Sarah Porter, director of Kyl Center for Water Policy at Arizona State University, told The Hill. “The state is telling developers you can no longer rely on the water underneath the future subdivision as the water for that subdivision.” 

The certificates are not necessary for construction in all parts of greater Phoenix, but the limits are meant to slow growth in the area and make sure existing water demand can be met. Developers can use other sources of water, including water sold from designated parties, farmers or Native American tribes, to continue their projects, The Guardian reported. However, drought and short water supply have been an issue everywhere in this region.

Arizona Gov. Katie Hobbs also announced $40 million from the American Rescue Plan Act funds to further conserve the state’s water resources and assured there would be enough water for existing homes and businesses.

“What the model ultimately shows is that our water future is secure: the Assured Water Supply Program is working,” Hobbs said in a statement. “Water supplies for homeowners and businesses are protected. Growth has been planned for, and will continue. My message to Arizonans is this: we are not out of water and we will not be running out of water because, as we have done so many times before, we will tackle the water challenges we face with integrity and transparency.”