Leaders calling Arizona’s new water law one of the most significant in state history

PHOENIX — Some state leaders are calling a bill Gov. Katie Hobbs signed into law in late June as one of the most significant pieces of legislation in Arizona’s history.

“The Ag-to-Urban Groundwater Conservation program, codified into law with the signing of Senate Bill 1611, is a win for Arizona families, for farmers and for our aquifers,” Hobbs said during a Tuesday event.

The bill she signed, also known as the “Ag-to-Urban” Bill, will allow farmers to sell their groundwater rights to housing developers.

Gov. Katie Hobbs believes Ag-to-Urban law will help Arizona

This new law helps developers bypass another historic piece of Arizona water legislation, the 1980 Groundwater Management Act, which required some builders to prove they had access to 100 years’ worth of water before they could begin construction.

The goal of the program is to help retiring farmers profit off of their land, boost Arizona’s housing supply and conserve water by transitioning agricultural land that uses a lot of water to residential communities that use much less of it.

.@GovernorHobbs held a ceremonial bill signing for a historic water bill that will allow farmers to sell groundwater rights to housing developers. @KTAR923 reporter @ColtonKrolak has the story. pic.twitter.com/Cc8QJxEV0A

— Arizona’s Morning News on 92.3 (@AZMorningNews) July 30, 2025

Hobbs said the bill will also help during Colorado River water negotiations when it comes to determining how water cuts will be shared.

“The work we’re doing to conserve water in our state puts us in a stronger position,” Hobbs said.

“It shows that we will continue to be good stewards of our water, and that we are taking real measures to conserve and be a good partner with all of the basin states.”

The sponsor of the bipartisan bill, State Senator TJ Shope, also spoke at the Tuesday event.

“If you want to leave a lasting legacy … by offering what we hope is affordable housing for the next generation of Arizonans, we want to provide a roadmap for you to do so,” Shope said.

The program is expected to save 10-million-acre feet of water over the next century, according to Hobbs.

The Ag-to-Urban Program will become effective on September 26, 2025.

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