Assigned to NR FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
FACT SHEET FOR H.B. 2204
assured water supply; commingling
Purpose
Allows the Director of the Arizona Department of Water Resources (ADWR), for the
purpose of determining whether sufficient groundwater, surface water or effluent of adequate
quality will be continuously available to satisfy the water need of the proposed use, to consider
only the proposed source or sources of the supply dedicated to the proposed use regardless of
whether the water is distributed through a water delivery system that is commingled with other
sources of water supply.
Background
A person who proposes to offer subdivided lands for sale or lease in an active management
area (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 and before filing with the Arizona 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 designated provider.
An assured water supply means that: 1) sufficient groundwater, surface water or effluent
of adequate quality will be continuously available to satisfy the water needs of the proposed use
for at least 100 years; 2) the projected groundwater use is consistent with the management plan
and achievement of the management goal for the AMA; and 3) the financial capability has been
demonstrated to construct the water facilities necessary to make the supply of water available for
the proposed use, including a delivery system and any storage facilities or treatment works (A.R.S.
ยง 45-576).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Allows the Director of ADWR, for the purpose of determining whether sufficient groundwater,
surface water or effluent of adequate quality will be continuously available to satisfy the water
need of the proposed use, to consider only the proposed source or sources of the supply
dedicated to the proposed use regardless of whether the water is distributed through a water
delivery system that is commingled with other sources of water supply.
2. Prohibits the Director of ADWR from directly, indirectly or by rule or agency practice from
requiring a subdivider that applies for a certificate of assured water supply or a commitment
of water service from a designated provider to procure or dedicate a source of supply that
exceeds the proportionate share of the water needed to meet the subdivider's proposed use. FACT SHEET
H.B. 2204
Page 2
3. Makes technical and conforming changes.
4. Becomes effective on the general effective date.
House Action
NREW 2/14/25 DPA 6-3-0-1
3
rd
Read 3/10/25 31-25-4
(W/O emergency)
Prepared by Senate Research
March 20, 2025
SB/mg