Scottsdale considers new restrictions for large water users as demand rises

Scottsdale is moving forward with plans to create a large water users ordinance to help mitigate the effects of Colorado River water cuts.

The changes under consideration would apply to new large water users, not existing ones.

At the Scottsdale City Council’s Sept. 22 work study session, staff recommended new requirements as projected demand increases for large water users.

Businesses that use more than 100,000 gallons per day would need to produce a conservation plan.

Those that use more than 250,000 gallons per day would need to conduct an economic impact analysis.

And those that use more than 500,000 gallons per day would need additional review and council approval.

The new plan would include penalties for large water users who violate their conservation plans, which current city regulations do not include.

There also is no current requirement for large water users to conduct additional reviews as daily use increases.

Who are Scottsdale’s current large water users?

Scottsdale currently has 12 entities classified as large water users, none of which use more than 500,000 gallons per day.

These include two hospitals and six multifamily and homeowners associations that use between 100,000 and 250,000 gallons per day.

Two of Scottsdale’s large water users, an HOA and a resort, use between 250,000 and 500,000 gallons per day.

Councilwoman Jan Dubauskas questioned why the two largest water users are using potable water and not reclaimed water for outdoor use and asked if the council could look into making that change.

Large water users could potentially provide their own water

Scottsdale Mayor Lisa Borowsky, who brought the item forward, said she’d like to see new large water users provide their own water.

“If it doesn’t fit within our plan, the city’s plan, I would really like to see us have that flexibility to require that. I think that’s critical at this point,” Borowsky said at the meeting.

Scottsdale has a 100-year assured water supply designation, which means the city is required to provide water for new developments.

City Attorney Luis Santaella said he’ll look into adding the self-supply requirement to the updated ordinance. However, he indicated it might be illegal to ask new developments to bring their own water because of the 100-year assured water supply designation.

Data centers and semiconductor factories are examples of the types of businesses that are likely to be large water users in metro Phoenix, although Scottsdale doesn’t currently have facilities from those industries that use more than 100,000 gallons of water per day.

Most of Scottsdale’s water goes to residential use

Single-family and multifamily residential made up more than 80% of Scottsdale’s water use in 2025.

Borowsky said the goal of updating the large water users ordinance is to avoid imposing water cuts on residents.

However, Councilman Adam Kwasman is worried the updated ordinance will end up regulating homeowners.

“Any type of large-scale plan like this is going to put individual residents and homeowners squarely in the crosshairs, even if they claim they’re not going to do it,” Kwasman said at the meeting.

The City Council is waiting for final language from the staff recommendations before it can vote on an updated ordinance.

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