Arizona judge sides with homebuilders in dispute over state groundwater supply requirements
Arizona homebuilders recently scored a legal win in their lawsuit over state groundwater requirements, paving the way for new development.
Watch: Jude rules in favor of Home Builders Association of Central Arizona over groundwater dispute | 1 min
Arizona homebuilders recently scored a legal win in their lawsuit over state groundwater requirements, paving the way for new development to move forward in two Phoenix suburbs.
A Maricopa County Superior Court judge last month ruled in favor of the Home Builders Association of Central Arizona in its lawsuit against the Arizona Department of Water Resources.
The judge ruled that the ADWR failed to comply with the Administrative Procedure Act rulemaking process when changing the groundwater criteria it uses to review homebuilding applications.
ADWR Director Tom Buschatzke told KTAR News 92.3 FM he plans to appeal the ruling.
“We have to look at all of the demands on that groundwater. … Not just homebuilding demand,” Buschatzke said.
Why did homebuilders sue state over groundwater requirements?
At issue, HBACA developers had to obtain a certificate to show the water supply in Buckeye met the state’s 100-year requirement for new homes.
While the ADWR found enough groundwater physically available in the site of the proposed subdivision, it determined the development would draw down the aquifer below minimum required levels in other parts of the Phoenix Active Management Area, or AMA.
Buschatzke disagreed with the judge’s determination that the AWDR’s use of AMA-wide criteria known as the Unmet Demand Rule and the Depth-to Water Rule was a rule change.
And he defended the ADWR position by explaining that the groundwater in the Phoenix AMA is interconnected.
“If you pump it out in one place, it could draw down the aquifer level in another place, even pretty far away in terms of geography,” Buschatzke said.
ADWR rules shut down home construction in Buckeye, Queen Creek
New home projects have been on hold in Buckeye and Queen Creek since the AWDR invoked the AMA-wide criteria in 2024. The HBACA filed its lawsuit, with representation from the Goldwater Institute, in January 2025.
“The rule literally shut down new home construction exactly where we need it and drastically compounded the affordable housing crisis in Arizona,” Jon Riches, vice president of litigation for the Goldwater Institute, told KTAR News.
The ruling is not about water policy, rather the limits of agency power and who should make these decisions, Riches said.
He argued the law only requires a 100-year assured water supply at the development site, not the entire aquifer.
Buschatzke said he wants to protect existing homeowners in other parts of the Valley, noting that property values are tied to available water supply.
“We’re improving all the time and … making sure that the protection that people expect for their water supply is really there,” Buschatzke said.
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Comments
3 Comments
"New growth provides local governments an opportunity to receive additional cash in the short term in exchange for taking on unpayable, long-term liabilities. This ratio is important because we’re done adding infrastructure. Any community serious about their own financial stability is going to take the obvious first step and stop adding more liability. There is no reason for any North American city to build another foot of roadway, or put in another length of pipe, to serve any new property anywhere. Our infrastructure is maxed out; we’re done expanding."
-Strong Towns: A Bottom-Up Revolution to Rebuild American Prosperity
Queen Creek is already borrowing water from elsewhere. These developers don't care if you run out of water later as long as they get paid now. Wise up. If you buy one of these houses, have fun flushing your toilet with Evian.
pure greed without thought for future. When coupled with the growing number of data centers and chip mfg. the valley will dry up and become uninhabitable .
They can always switch to Brawndo. "It has electrolytes!"