After two years of halted construction, a key development in Arizona’s housing landscape could bring tens of thousands of new homes to parts of Maricopa County. According to High Country News, the Arizona Department of Water Resources (ADWR) recently permitted EPCOR Water Arizona Inc. to move forward with plans for up to 60,000 homes across Buckeye, Surprise, and other areas of the Phoenix metropolitan region.
The decision marks the first significant relaxation of a 2023 moratorium that blocked new subdivisions relying solely on groundwater. That moratorium was established when ADWR determined the Phoenix area’s aquifer could no longer meet the state’s 100-year water supply requirement. The requirement was put in place under Arizona’s Groundwater Management Act of 1980. High Country News reported that the freeze affected far more housing projects than initially acknowledged.
Meanwhile, reporting by InBuckeye indicates that ADWR also approved a separate “transportation order” allowing Buckeye to withdraw groundwater from the Harquahala Basin, specifically, up to 5,926 acre-feet per year for Buckeye and 5,000 acre-feet for Queen Creek, representing a historic first in the state. The approval is touted as unlocking a new water supply for future growth.
Under a new legal process, EPCOR secured an “alternative designation,” which permits development if renewable water sources are eventually brought into the region. The arrangement requires EPCOR to reduce groundwater pumping by 25 percent once those alternative supplies arrive. Industry analysts expect other public and private water providers to pursue similar designations to revive stalled developments.
Hobbes praises approvals
Governor Katie Hobbs praised the approval, describing it as a balance between growth and conservation. “We are again demonstrating that Arizona can, and will, continue to grow our economy while protecting our water,” Hobbs said in a statement.
Water policy expert Kathleen Ferris, a former ADWR director, told Phoenix radio station KJZZ that the new rules are “an incremental approach to weaning water providers away from groundwater onto renewable water supplies.” Ferris added that while the plan may help some development move forward, it will not fully restore the projects frozen under the moratorium—especially those far from existing water service areas, such as parts of Buckeye.
The new framework provides cautious optimism for Arizona’s housing market, offering a pathway to sustainable growth while acknowledging the limits of the state’s finite water resources.
Reporting originally appeared in High Country News (October 2025). Read the full story at hcn.org.
One Response
This is crazy! What is alternative water sources? If there is an alternative why are we not forcing the city and developers to foot the bill instead or always increasing the bill on Joe Public !!!
City of Buckeye is again flocking its residents!! Mayor should be recalled !! Why must Buckeye grow!!!