Democrats Set to Push Major Arizona Groundwater Reforms in 2025

Democrats intend to overhaul Arizona’s groundwater management rules following their acquisition of legislative control. This shift in power sets the stage for a major confrontation over how the state protects its most vital liquid resource.

The move follows a period of significant legislative deadlock. In January 2025, Senate President-Elect Priya Sundareshan proposed the Rural Groundwater Management Act, a sweeping plan to reform how water is handled outside major metropolitan hubs. That legislation failed to secure even a single committee hearing during the previous session, ABC15 Arizona in Phoenix (KNXV) reported.

Now, with a second term for Katie Hobbs and Democratic majorities in both chambers beginning in January, the political landscape has shifted. The proposed reforms aim to grant rural communities the authority to establish their own water management programs and set specific conservation targets. This is a direct response to what Gov. Katie Hobbs’ office described as a “free-for-all in rural Arizona on unprotected, vulnerable groundwater aquifers.”

Right ivf act democrats push ivf bill expand access protect fertility rights

The struggle for rural water security

The tension between rapid urban growth and rural preservation has defined Arizona’s water politics for years. While the Phoenix metro area faces intense scrutiny regarding its long-term supply, rural areas often lack the same regulatory guardrails. Sundareshan and state Rep. Chris Mathis have been working directly with rural leaders to craft legislation that addresses these local vulnerabilities.

“At the state legislative level, we can and must secure our groundwater and put more groundwater protections into place,” Sundareshan told reporters on Tuesday. She indicated that her 2025 bill will serve as the foundational text for the upcoming session, though she said that lawmakers will need to evaluate whether updates are required based on recent developments.

One such development involves the designation of the state’s eighth Active Management Area in the Ranegras Plain. Located in La Paz and Yuma counties, this designation imposes new restrictions on groundwater use. Sundareshan suggested the administration will monitor the effectiveness of these new areas to determine if previous proposals need adjustment.

Democrats aim to reform Arizona's groundwater laws — ABC15 Arizona

The debate isn’t just about new rules; it’s about the legal battles currently tearing through the statehouse. In 2023, Hobbs instituted a moratorium on homebuilding in certain high-growth sectors of metro Phoenix.

This decision followed an Arizona Department of Water Resources study which indicated that groundwater would fail to meet demand over the next century. However, a judge ruled in favor of developers earlier this year in a lawsuit challenging that freeze.

Furthermore, the administration’s attempt to allow developers to offset groundwater usage by providing additional water to the system—the Alternative Path to Designation of Assured Water Supply program—has also faced judicial setbacks. Sundareshan indicated a change in strategy regarding the ongoing legal friction between the state and its own legislature.

“It rankled within me that the state Legislature was suing the state over water issues and water management. So that is absolutely one area of litigation that we will be not pursuing,” Sundareshan said.

Competing interests and political divides

The push for reform faces significant opposition from those who argue that strict groundwater regulations could stifle economic development and housing availability. Developers and some Republican lawmakers have argued that the state’s approach creates uncertainty for the construction industry and limits the ability to meet the housing needs of a growing population.

For many in the rural districts, however, the status quo feels like an existential threat. The argument from Democratic leadership is that the current system allows large-scale interests to deplete resources that local residents rely on for survival.

“Republicans have had their heads in the sand on the water crisis for far too long, and it is evident when you talk to rural mayors who are worried about their water supply, when you talk to rural farmers who are tired of corporations sucking up the limited water supply,” state Sen. Analise Ortiz told ABC15 Arizona in Phoenix (KNXV).

Ortiz believes the era of treating water as a political football is ending. She said that while water should have remained a non-partisan issue, the previous Republican majority effectively politicized it.

“Water should have never been partisan, but unfortunately, the Republican majority made it that way,” Ortiz said. “Times are going to change.”

The next legislative session is scheduled to begin in January, which will determine if these proposed management changes move from concept to law.