Goldwater Institute Battles Hobbs Admin Over Controversial Century-Old Groundwater Rule

By Matthew Holloway |

The Goldwater Institute has announced that its lawsuit against the Hobbs administration is advancing. This legal action targets the Arizona Department of Water Resources (ADWR) over a controversial rule requiring a 100-year groundwater supply in numerous regions of the state.

Jon Riches, Vice President for Litigation at Goldwater, expressed concerns about what he labels government overreach. He argues that this regulation allows bureaucratic bodies to bypass legislative authority, thereby threatening the established checks on governmental power. “This rule is a significant deviation from the legislative process and poses serious risks to Arizona’s water policy,” he stated.

Riches criticized Tom Buschatzke, the Director of ADWR appointed by Governor Hobbs, for enacting the so-called “unmet demand” rule without legislative approval. According to Riches, this action undermines Arizona law, which mandates formal rulemaking for substantial policy changes. He contends that halting new home construction across large areas of the Valley requires public input, which was not sought.

Additionally, he warned that this water rule may have far-reaching consequences for potential homebuilders. “If someone wishes to build a house, they could be blocked due to regulations tied to another area that does not meet these criteria,” he explained.

The email from Goldwater outlined three notable impacts on Arizona taxpayers: increased housing costs, restrictions on homebuilding, and the potential for government overreach. Riches emphasized, “This lawsuit represents one of the most significant challenges the Goldwater Institute has undertaken. Our history of opposing unconstitutional laws prepares us for this battle.”

The case, titled Home Builders Association of Central Arizona v. Arizona Department of Water Resources, is currently pending in the Maricopa County Superior Court, awaiting a response from the ADWR.

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