Hobbs Signs Ag-to-Urban Bill to Conserve 10M Acre-Feet in Arizona

PHOENIX — Arizona Gov. Katie Hobbs signed Senate Bill 1611 on Monday, greenlighting the "Ag-to-Urban" water conservation program in a bipartisan breakthrough. Sponsored by state Sen. T.J. Shope, the legislation creates a voluntary framework for farmers in the Phoenix Active Management Area and Pinal County to transfer water rights and land to developers. Urban projects must demonstrate lower water use, with conversion rates set at 150 acre-feet per acre in Phoenix and 100 acre-feet per acre in Pinal County — higher than the Arizona Department of Water Resources' initial proposal of 100 and 70.

State officials project the plan will conserve nearly 10 million acre-feet of groundwater, enough to support thousands of new housing developments while easing pressure on overdrafted aquifers. In active management areas like Phoenix and Pinal, developers must prove a 100-year assured water supply, a rule dating to the landmark 1980 Groundwater Management Act that first regulated pumping in these high-growth zones. The deal resolves months of negotiations between lawmakers and the water department, balancing agricultural needs with urban expansion in water-scarce central Arizona.

This signing builds on Hobbs' water security push. In January 2025, she proposed over $60 million in her executive budget, including $14.6 million for the Water Infrastructure Finance Authority's Water Conservation Grant Fund to fund efficiency projects statewide. By February, WIFA opened applications for $14 million in grants, allowing entities up to $3 million each for voluntary use reductions and system upgrades. Additional proposals seek $7 million for ADWR groundwater monitoring wells in rural areas and $30 million for the Colorado River Protection Fund to aid Lake Mead levels.