Arizona Water Company celebrates Governor Katie Hobbs’ signing of the groundbreaking ag-to-urban water legislation, marking a pivotal moment in Arizona’s approach to sustainable water management and long-term water security.
The newly-signed Senate Bill 1611 was crafted as a result of more than two years of bipartisan negotiations with farmers, homebuilders, conservationists, tribal communities, cities, water providers (including AWC) and policymakers. The legislation allows developers in Pinal and Phoenix Active Management Areas (AMAs) to access groundwater credits from voluntarily retired agricultural lands, helping sustain growth while protecting our most critical resource, groundwater.
“This historic legislation represents a win-win solution for Arizona’s water future,” said Casa Grande Mayor Lisa Navarro Fitzgibbons. “By allowing the conversion of agricultural water rights to urban use, we’re creating a framework that reduces overall water consumption while supporting responsible growth in our communities.”
Under the new law, landowners in groundwater-regulated areas who voluntarily retire farmland can convert their water rights to groundwater savings credits, which in turn can be used to provide developers with a 100-year assured water supply to construct new subdivisions while reducing groundwater use. The legislation incorporates key safeguards to ensure that development remains closely tied to farmlands with retired rights, reduces overall groundwater use, and maintains a balance between economic growth and conservation.
The ag-to-urban program delivers multiple benefits for Arizona residents. It conserves water—residential development typically uses only 1–1.5 acre-feet per year versus the 4–6 acre-feet consumed by agriculture—while enabling sustainable growth in parts of Pinal and Maricopa counties under strict water protections. The legislation also fosters economic opportunity by tying a reliable water supply to developable farmland, reducing the need for higher-cost water sources and creating more affordable new housing. Finally, it bolsters aquifer health through robust safeguards that mandate groundwater replenishment and preserve long-term water supplies.
“This legislation addresses the concerns raised by water experts and ensures that Arizona’s aquifers are protected for future generations,” said Pinal County Chairman Stephen (Steve) Miller.
The legislation earned praise from diverse stakeholders, including the Gila River Indian Community. Senator T.J. Shope, the bill’s sponsor emphasized the collaborative nature of the legislation, noting it’s “something we all shook hands on for the future of our state. This major water policy sends a strong message that Arizona can work together on policy that benefits us all.”
Rep. Teresa Martinez was instrumental in getting the bill through the Arizona House and added, ‘this water policy strikes the balance that Arizona needs. It promotes smart growth while conserving groundwater – a critical win for both our environment and our economy.”
Arizona Water Company recognizes that hundreds of thousands of acres across Pinal and Phoenix AMAs will be eligible for the ag-to-urban conversion program. The company is committed to working with all stakeholders to ensure the program’s successful implementation while maintaining sustainable water management for the state.
“This legislation positions Arizona as a national leader in innovative water policy,” added Fred Schneider, President of Arizona Water Company. “We look forward to supporting its responsible implementation as we work together to secure our water future.”
