Assigned to NREW AS PASSED BY COW
ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
AMENDED
FACT SHEET FOR S.B. 1081
exemption area; assured water supply
Purpose
Allows the Director of the Arizona Department of Water Resources (ADWR), on
application to the ADWR by a city or town, to designate a portion of a city or town that is located
both in the area delineated for exemption and in the Phoenix Active Management Area (AMA) as
having an assured water supply if outlined requirements are met.
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 ADWR before presenting
the plat for approval to the city, town or county in which the land is located, if required, 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 city, town or private water company designated as having an assured water supply (A.R.S
§ 45-576).
In an AMA, a city, town or private water company or irrigation district may withdraw
groundwater only pursuant to the established groundwater rights, except as provided by a
grandfathered right or as otherwise stated (A.R.S. § 45-491).
Current statute prohibits the groundwater rights and uses of service areas from being
construed to enlarge the authority of an irrigation district to withdraw and distribute groundwater
for municipal or industrial purposes (A.R.S. § 45-497).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Allows the Director of the ADWR, on application to the ADWR by a city or town, to designate
a portion of a city or town that is located both in the area delineated for exemption and in the
Phoenix AMA as having an assured water supply if:
a) the portion of the city or town seeking an assured water supply designation is located
entirely within an irrigation and water conservation district;
b) the city or town seeking an assured water supply designation has contracted with the
irrigation and water conservation district for a term of not less than 100 years under which
the city or town will receive water that the landowners in the district have the right to use
on their lands and will treat and deliver the water for exclusive use on irrigation and
conservation district lands for municipal use; FACT SHEET
S.B. 1081
Page 2
c) sufficient surface water or effluent of an adequate quality will be continuously available to
satisfy the portion of a city's or town's proposed water needs for up to 100 years; and
d) the city or town demonstrates the financial capability to construct the water facilities,
including delivery systems, storage facilities and treatment works, necessary to make the
supply of water available for the proposed use.
2. Allows the Director of the ADWR to accept evidence of the construction assurances to satisfy
the outlined requirement.
3. Allows the Director of the ADWR to review the determination that a portion of a city or town
has an assured water supply.
4. Allows the Director of the ADWR to determine that a portion of a city or town does not have
an assured water supply.
5. Becomes effective on the general effective date.
Amendments Adopted by the Committee of the Whole
1. Allows the Director of the ADWR, rather than requires, on application to the ADWR by a city
or town, to designate a portion of a city or town that is delineated as having an assured water
supply if outlined conditions are met.
2. Removes various requirements regarding the status of groundwater withdrawn and the
requirement for all future groundwater withdrawals for municipal use in outlined district to be
groundwater subject to replenishment, and any portion of the city or town with a contract for
groundwater within a district to be a member service area.
3. Adds to the requirements of the outlined city or town that applies to ADWR for having an
assured water supply.
4. Adds to the abilities of the Director of ADWR.
Senate Action
NREW 1/25/24 DP 4-2-1
Prepared by Senate Research
February 15, 2024
RA/slp