With the City of Phoenix having just traded its Colorado River water allotment in exchange for federal funding, an announcement by Governor Katie Hobbs about a new groundwater model left water aficionados and real estate developers stunned. Hobbs’ plan includes new restrictions on new construction in the Phoenix area.
Hobbs’ announcement follows the release of a new study, Phoenix Active Management Area Groundwater Model, by the Arizona Department of Water Resources.
The study, Phoenix Active Management Area Groundwater Model, found that the groundwater demand in the Valley would not meet the demand if nothing were done. In response, Hobbs proposed a pause on new construction in the area that would rely on groundwater.
Hobbs’ draconian plan also relies on a $40 million investment of American Rescue Plan Act funds to spur increased water conservation.
A pause on new construction could have devastating effects on middle- and lower-income residents, who are facing ever increasing housing costs due to a housing shortage.
With Hobbs' anti-sprawl move w/ water "shortage" as a pretext, it's worth reminding everyone that there are better ways to address the situation.
cc @realAlexKolodin @electjacqparker @azaustinsmith @votewarren @AZHouseGOP @AZSenateGOP @votenickmyers @VoteKThompson @waldenpatriot https://t.co/s6B4p5vMt5
— Bill Brown (@billbrown) June 2, 2023
Critics recognize that Arizona is in the middle of one of the worst droughts in its history, however they point to a report by Bryan Leonard, assistant professor at Arizona State University’s School of Sustainability, who argues that delivering better water conservation does not require a dramatic expansion of the role of government.
The Goldwater Institute released the report in conjunction with The Property and Environment Research Center (PERC), where Leonard is a research fellow.
“It’s crucial that policymakers take immediate action to prepare for the possibility of a hotter and drier future,” Leonard said in a press release. “Promoting more efficient use of water will yield reforms that allow markets to function better.”
“With water supplies dwindling and Arizona’s population expected to continue rising in the next two decades, the time is now to address the state’s looming water crisis,” adds Victor Riches, President, and CEO of the Goldwater Institute. “But bigger government isn’t the answer. By implementing free-market reforms, lawmakers can improve Arizona’s water policy to help secure our state’s future.”
The PERC report offers recommendations in four specific policy areas that that would improve Arizona’s water policy to ensure the state continues to thrive amid its drier future:
- Improve legal and policy institutions so the markets for surface water flourish, including by helping water-rights owners secure their property rights and establishing a state water trust;
- Clarify rights to groundwater and innovatively use markets to ensure the sustainability of groundwater basins;
- Explore strategies to augment water supplies while weighing costs and benefits, such as removing regulatory barriers and exploring creative interstate opportunities to collaborate on increasing water supply; and
- Support voluntary water conservation in urban areas, including by promoting incentive-based xeriscaping programs and championing indoor water reuse.