Cave Creek continues search for more water after calling off rights deal

PHOENIX – The Phoenix suburb of Cave Creek is exploring ways to bolster its dwindling water supply after pulling out of a deal to purchase new groundwater rights.

In October, Cave Creek put down $50,000 in earnest money for 1 acre of land from Harquahala Valley Landowners LLC. The proposal included the rights to 500 acre-feet of groundwater annually for the next 100 years at a price of $11.25 million.

“We have no interest in the land, but the land is required to get access to the [water,]” Cave Creek Mayor Bob Morris told KTAR News 92.3 FM.

The Town Council voted last week to cancel the purchase in time to get the earnest money back after issues arose during the due diligence process.

“At some point we’re going to buy water, period. We’re going to do it,” Morris said. “This was just not enough certainty around this deal to make it happen at this time.”

Why did Cave Creek cancel plan to buy land for water rights?

The suburbs of Buckeye and Queen Creek are also buying water rights in Harquahala Valley, which is west of metro Phoenix, but they are doing so for their long-term supply.

Cave Creek has a more urgent need and is seeking help paying for the infrastructure required to transfer the water to the Phoenix area, an expense that would be in addition to the water rights purchase.

“We have arranged our system and saved water so … we have water to last about five to seven years, by our estimates,” Morris said. “And so we have time to wait to see how this shakes out and to find partners to make sure the partners perform on the same timetable that we want to perform. … We’d like to get more water as soon as possible.”

New estimates from the Arizona Department of Water Resources show that Cave Creek is in danger of falling below the state-required standard of a 100-year supply if it doesn’t act.

How do Colorado River water cuts impact Cave Creek?

The town’s problems are tied to its heavy dependance on Central Arizona Project, which is facing cuts to the water it gets from the Colorado River.

“We do not have enough water because we depended upon Central Arizona Project,” Morris said. “The state certified the water as 100-year water, and now we find out that we don’t have the water. So, we followed all the rules — every rule that’s out there — and the state certified it. … And guess what? It’s not a 100-year supply.”

He said there will be two more opportunities to buy land from Harquahala and expects Cave Creek will be back at a later phase to move forward with the purchase.

The town is also actively working on other ways to extend its water supply.

“We are protecting our residents and we’re going to make a good decision on this, and, just, this was not the time given the fact that it costs so much,” he said.

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