Ag-to-Urban Program Now Active, Conserving Water and Boosting Housing

A new water conservation program, which allows farmers to sell their water rights to housing developers, officially went into effect last week.

The "Ag-to-Urban" program is designed to address two of Arizona's most pressing challenges, such as water scarcity and the housing shortage. 

By converting high-water-use farmland to residential development, state officials project the program could save nearly 10 million acre-feet of water over its lifetime while enabling the construction of tens of thousands of new homes.

Governor Katie Hobbs signed Senate Bill 1611 into law in June following bipartisan support in both chambers of the state legislature.

"The Ag-to-Urban water conservation legislation shows what we can achieve when state policymakers come together to focus on solving the problems that Arizonans care about most," Katie Hobbs said in a statement. "I have fought day in and day out to protect Arizona's water while growing our economy, and I am proud to have brokered a bipartisan, historic water deal that will save millions of acre-feet of water, help lower housing costs, and create jobs."

The Program

The voluntary program allows farmers with irrigation rights in metro Phoenix and Pinal County to sell those water rights to developers for new housing projects. Proponents say the shift from agricultural to residential use significantly reduces overall groundwater consumption.

Danny Seiden, President and CEO of the Arizona Chamber of Commerce & Industry, praised the legislation as essential for the state's economic future.

"Arizona's economic competitiveness depends on long-term water security. This legislation delivers real conservation while providing the business community with the certainty it needs to keep building and growing," Seiden said. "It's a smart, bipartisan, market-based solution that reinforces Arizona's leadership in sustainable development and responsible water management."

The program has drawn support from water policy experts and tribal leaders, including Gila River Indian Community Governor Stephen Roe Lewis and former Arizona Governor Bruce Babbitt, who called it "an outstanding accomplishment."

Drawn Criticism

However, the initiative has also faced criticism from those concerned that it may encourage urban sprawl without adequately securing Arizona's long-term water supply.

Arizona Department of Water Resources Director Tom Buschatzke defended the program's conservation approach. 

"The strong bipartisan support for this program is an indication that Arizona can make the hard choices on water needed in an era of limits," Buschatzke said.

State leaders have expressed that the Ag-to-Urban program shows Arizona's commitment to water conservation for the future of communities.