Abstract

Most municipal water providers in Arizona currently rely on some combination of groundwater, imported Colorado River water and/or other surface waters for their water supplies. Anticipating that population growth and provisions of the state's Groundwater Management Act will prove these supplies insufficient to meet projected demands, water providers, and developers are turning to water transfers for an abundant source of water.

During the past few years, municipalities, developers, and investors have spent close to $200 million to acquire tens of thousands of acres of land in rural Arizona, not for the value of the land or its crops or any structures on it, but for its access to surface or groundwater.' This phenomenon, termed "water farming," has generated significant controversy over the potential effects on rural areas in which the water originates.

This article describes the historical setting of water farming in the West, early transactions in Arizona, and the legal and social forces driving the current water farming activity. The current legal framework for transferring various types of water in Arizona is presented, including recent legislation dealing with some of the negative impacts of water farming on areas of origin, and the possible consequences of a court decision on the legal status of effluent. Unresolved policy issues and earlier legislative attempts to pass comprehensive transfers legislation also are discussed.

How to Cite