New Report Uncovers Arizona’s Water Crisis: It’s All About Infrastructure, Not Scarcity!

By Matthew Holloway |

On Monday, the Common Sense Institute (CSI) Arizona released a significant report regarding the state’s water resources. The report challenges the prevalent notion that water scarcity is Arizona’s primary concern, arguing instead that the true issues lie in “infrastructure and ingenuity.”

CSI warns that if Arizona prioritizes restricting growth and limiting development over investing in necessary infrastructure and water policy revisions, the state could lose billions in economic activity and thousands of jobs. “The stakes are high,” the press release emphasized.

Glenn Farley, CSI Arizona’s Director of Policy & Research, elaborated on the report’s findings. He stated, “Arizona’s water challenges extend beyond scarcity; they encompass our capacity for innovative solutions. Historically, we’ve thrived by engineering methods that transport water from plentiful to arid regions. Today’s leaders face pivotal choices that could dramatically influence Arizona’s future economy.” He urged for investments in infrastructure to enable property owners to access the water needed for economic growth.

The report specifically critiques the home-building moratorium in the Phoenix Active Management Area (AMA), recently enacted by Governor Katie Hobbs’ administration. CSI estimates that maintaining this moratorium for the next decade could obliterate around $2 billion from the state’s GDP. In contrast, enhancing water supply by 300,000 acre-feet could contribute an impressive $4.7 billion to the state’s economy.

Moreover, CSI underscores the importance of expanding “legal and physical infrastructure” to facilitate the movement and trade of water. This strategy could enhance water availability without necessitating involuntary reallocations.

A case highlighted in the report details a controversial 2018 water deal between an investment firm and the town of Queen Creek. This arrangement allowed Queen Creek to purchase 2,033 acre-feet of water for $24 million, enabling the city to secure necessary water rights while transforming agricultural land in Cibola, Arizona.

CSI asserts that political and legal structures should adapt to support such transactions, which can help navigate Arizona’s transition and ongoing growth. The report points out that the resulting financial resources could also foster local economic development.

Additionally, the think tank urged Arizona lawmakers to pursue alternative water sources, including potential desalination operations in Mexico near the Sea of Cortez, roughly 250 miles from Phoenix. Lessons from Israel and Singapore, which have successfully implemented similar systems, underscore the viability of this approach. Although current desalination costs are significant, advancements in technology may lead to lower prices and increased consumer acceptance.

Discussions involving Arizona, Nevada, California, and Mexico regarding joint water projects may pave the way for trading desalinated water in exchange for a portion of Mexico’s Colorado River allocation, according to a 2021 USA Today article.

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.