Arizona is taking significant steps to address its housing shortage and water conservation needs with a new law signed by Governor Katie Hobbs. This legislation, known as the “ag-to-urban” bill, aims to transform agricultural land into urban housing while managing groundwater resources efficiently.
SB1611 allows housing developers to purchase groundwater rights from farmers in the Phoenix metropolitan area and Pinal County. These farmers, in return, agree to convert their agricultural land for residential development. This transition is expected to significantly reduce water usage, as the new homes will require far less water than traditional farming operations.
The bill represents the culmination of extensive bipartisan discussions, heralded as a mutually beneficial solution by its supporters. Senator T.J. Shope, who sponsored the bill, described it as the most impactful water legislation seen in decades.
Despite its passage, the bill faced bipartisan resistance, with some legislators expressing disappointment over the lack of progress on broader issues like rural water conservation. Representative Chris Mathis voiced concerns, 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.”
Earlier this year, Governor Hobbs introduced a rural groundwater management proposal, which did not advance in the Republican-majority legislature. Hobbs, expressing her commitment to water management, stated, “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 legislative push was influenced by a halt on new housing developments in Phoenix’s suburbs due to depleted groundwater reserves. The new law provides developers with alternative avenues to pursue construction in these areas.
According to Hobbs, this initiative could potentially lead to the creation of tens of thousands of homes and conserve up to 10 million acre-feet of water. However, as the program relies on voluntary participation by farmers, its overall impact remains to be seen.
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