Arizona trims Phoenix homebuilding as groundwater dries up

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Arizona trims Phoenix homebuilding as groundwater dries up
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A huge shortage will have significant implications for housing developments in the coming years in the booming Phoenix metro area.

A new study showed that the groundwater supporting the Phoenix area likely can’t meet additional development demand in the coming century, officials said at a news conference. Gov. Katie Hobbs and the state’s top water officials outlined the results of the study looking at groundwater demand within the Phoenix metro area, which is regulated by a state law that tries to ensure Arizona’s housing developments, businesses and farms are not using more groundwater than is being replaced.

Under state law, having that assured supply is the key to getting the necessary certificates to build housing developments or large industrial buildings that use water. Many cities in the Phoenix metro area, including Scottsdale and Tempe, already have this assured water supply, but private developers also must demonstrate they can meet it.

Porter said the change won’t necessarily curtail development in the booming Phoenix metro area, but it could push it towards bigger and older cities like Tempe and Scottsdale. Nor is it expected to curtail water use for industry and manufacturing – an important distinction given Arizona is quickly becoming a hub for advanced manufacturing of technology, including semi-conductor chips.

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