Arizona’s water challenges trickle down to real estate agents, who increasingly face questions about the viability of living in the desert

Arizona’s water challenges are trickling down to the real estate market, as agents increasingly face questions about the issue from potential homebuyers.

In a recent presentation to Phoenix Realtors, Warren Tenney, executive director of the Arizona Municipal Water Users Association, called the prospect of a reduced Colorado River water supply a “paradigm shift.”

The state is expected to lose about 30% of its Colorado River allocation starting next year under the new two-year agreement from the U.S. Bureau of Reclamation.

“During this challenge, we cannot afford to give even the perception that any tap will go dry,” Tenney said in an Oct. 21 presentation.

He said conservation alone won’t solve the problem; new water supplies will also be needed. But cities have been preparing for years, Tenney said.

Expert tells real estate agents how cities diversify water supplies

“Ironically, even in the desert, we have more than one supply of water. And each city has a different combination, a different portfolio of supply,” Tenney said.

For example, about 11% of Tempe’s water comes from the Colorado River, with the bulk coming from the Salt River Project.

Scottsdale’s water portfolio, by contrast, is made up of more than 70% Colorado River water.

Arizona cities have been exploring multiple supply options, including stored water, groundwater and advanced purification.

During times of abundance when cities don’t use all of their Colorado River water, the surplus can be stored underground in recharge basins for use in times of drought.

Cities such as Peoria, Queen Creek and Buckeye have purchased groundwater from Harquahala Valley in the western part of the state.

But experts warn against relying too heavily on groundwater because it’s a finite resource.

Meanwhile, Phoenix has invested $3 billion in advanced water purification with plans to open three water recycling facilities over the next seven years.

Why is Arizona’s water supply an issue for real estate agents?

The river was originally allocated for 16 million acre-feet to be shared by seven Colorado River Basin states.

But by 2000, the average annual flow was down to about 12.4 million acre-feet. In 2020, the annual average was closer to 10 million acre-feet.

Water scientists and advocates did not expect the problem to worsen as quickly as it did.

“The winter this year [2025-‘26] was the worst snowpack ever experienced in the Colorado River Basin. Only 7.2 million acre-feet was generated from that,” Tenney said.

A wet winter this year will help, but much of the runoff will be absorbed by ground that has been parched by climate change instead of making it to the watershed.

“The total Colorado River system is down 17% from what it was last year,” Tenney said.

The goal of conservation efforts and tapping into new supplies is to avoid mandatory water cuts for residential users.

Tenney said that depending on the severity of shortages, residents could be asked to do more, but voluntary conservation is always preferred.

“People respond better to voluntary requests than telling them, ‘Hey, you need to do this,'” he said.

He told the real estate agents to encourage worried clients to ask city officials about their water portfolio and what the city is doing to invest in new supplies.

Related

SRP pulls back curtain on Mormon Flat Dam maintenance work at Canyon LakeDemocrat says ‘Arizona got screwed’ in Colorado River water agreementArizona joins lawsuit over Colorado River plan, warns of deep water cutsIs Arizona’s water supply getting boost from recent storms, El Niño?Arizona Cotton Growers Association honors lawmaker for service to agriculture industryScottsdale considers new restrictions for large water users as demand rises