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ARIZONA BUSINESS

State water department will appeal judge’s decision to strike down water restrictions

An Arizona judge struck down the state's "unmet demand rule" that has stalled home construction across Maricopa County. The Arizona Department of Water Resources plans to appeal.

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PHOENIX – An Arizona trial court has struck down the Arizona Department of Water Resources’ restriction on home development, but homebuilders won’t be starting construction any time soon as a result on lots that have been gathering dust over the past few years.

The Goldwater Institute sued Gov. Katie Hobbs administration in January 2025 over water restrictions on behalf of the Home Builders Association of Central Arizona.

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ADWR had imposed a new rule in 2024 that requires a 100-year groundwater supply across water management areas, and not just at development sites. This new restriction is known as the “unmet demand rule,” a restriction limiting construction throughout metro Phoenix, said Jon Riches, vice president for litigation and general counsel for Goldwater Institute.

“We have passed on several land deals we thought were interesting because of the water restrictions caused by this capricious rule,” said Don Barrineau, Phoenix division president for Orland, Florida-based Mattamy Homes, which is the U.S. arm of the Toronto-based homebuilder.

This story is posted in partnership with Phoenix Business Journal. Click to read the full story.

Comments

1 Comments

D
Dems Rnuts 3 months ago

We cannot elect a governor funded by California interests. Hobbs has already admitted that under her agreement, Arizona will face water reductions **10% higher** than those in California or Nevada. This creates a clear conflict of interest; her campaign is fueled by California dark money at the expense of Arizona’s resources.

P
PsychOps Knows 3 months ago

Good luck selling a home with a 30-year mortgage and only 15-year supply of water. So much for being able to pass that "great investment" down to your children.