Goldwater Institute Takes a Stand Against Gov. Hobbs’ Overreaching Bureaucracy

Governor Katie Hobbs’ administration is under fire from the Goldwater Institute over newly imposed water regulation rules that the organization claims have halted new home construction in Maricopa County’s rapidly developing areas. In a recent letter, the Goldwater Institute challenged the legality of the regulations enforced by the Arizona Department of Water Resources (ADWR).

The press release from Goldwater outlined serious concerns that the ADWR’s actions, lacking both legislative approval and a formal regulatory framework, are significantly driving up housing costs and hindering economic growth across Arizona. The organization characterized this regulatory move as potentially one of the biggest bureaucratic overreaches in the state’s history, urging the administration to reconsider its approach.

Jon Riches, Vice President for Litigation at Goldwater, detailed the two primary regulations stifling the housing market. The first, termed the ‘AMAWide Unmet Demand Rule,’ dictates that if groundwater modeling indicates a well may not meet demand projections for the next century anywhere within the Phoenix Active Management Area (AMA), then no groundwater is deemed available across the entire domain. The second is the ‘AMA-Wide Depth-to-Water Rule,’ which similarly states that if modeling predicts water depth will exceed 1,000 feet in any location within the Phoenix AMA in the next century, then all groundwater in the area is considered unavailable.

Riches pointed out that these rules lack legal grounding in Arizona law and were not established through the required legal procedures. He referenced prior court rulings affirming that such policies must undergo the Administrative Procedure Act’s rulemaking process. A regulation is generally applicable if it implements or interprets policies or describes agency practices.

Goldwater criticized the foundational concept of “unmet demand,” asserting that if a modeling suggests potential shortages, zero groundwater is made available throughout the area. Riches noted this flawed model behaves arbitrarily, suggesting that if one well in the East Valley faces a shortage, it triggers a water shortage designation for unrelated developments elsewhere, like in the West Valley.

The Goldwater Institute’s press release expressed alarm at what it sees as a unilateral action by the Hobbs administration, effectively bypassing legislative and judicial oversight and exercising what they describe as an unprecedented expansion of executive power.

Matthew Holloway is a reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.