State of Arizona
DEPARTMENT OF WATER
RESOURCES ANNUAL REPORT

FY 2011

ADWR’S OPERATIONS
In 1980, the Arizona Department of Water Resources (ADWR) was created to
ensure dependable long-term water supplies for Arizona's growing communities.
ADWR succeeded the “authority, powers, duties and responsibilities of the
Arizona Water Commission and the State Water Engineer relating to surface
water, groundwater and dams and reservoirs.” A.R.S. § 45-103(A). The Director
of ADWR “has general control and supervision of surface water, its appropriation
and distribution, and of groundwater to the extent provided by this title, except
distribution of water reserved to special officers appointed by courts under
existing judgments or decrees.” A.R.S. § 45-103(B).
To carry out its statutory responsibilities, ADWR administers state water laws
(except those related to water quality), explores methods of augmenting water
supplies to meet future demands, and works to develop public policies that
promote conservation and equitable distribution of water. ADWR oversees the
use of surface and groundwater resources under state jurisdiction and negotiates
with external political entities to protect and augment Arizona's water supply.
Groundwater Management
To address groundwater depletion in the state's most populous areas, the state
Legislature enacted the Groundwater Code in 1980, and directed ADWR to
implement its provisions. The goal of the Code is twofold: 1) to control severe
groundwater depletion and 2) to provide the means for allocating Arizona's limited
groundwater resources to most effectively meet the state's changing water needs.
Active Management Areas
Areas where groundwater depletion was most severe were designated as Active
Management Areas (AMAs). There are five AMAs: Prescott, Phoenix, Pinal,
Tucson, and Santa Cruz. These areas are subject to regulation pursuant to the
Groundwater Code. To meet the statutory requirements of the Code, management
goals were established for each AMA. In the Phoenix, Prescott, and Tucson
AMAs, the management goal is to achieve safe-yield by the year 2025. Safe-yield
is accomplished when no more groundwater is being withdrawn than is being
replaced annually. In the Pinal AMA, where the economy is primarily
agricultural, the management goal is to preserve that economy for as long as
feasible, while considering the need to preserve groundwater for future nonirrigation uses. The goal of the Santa Cruz AMA is to maintain its current safeyield status and prevent local water tables from experiencing long-term decline.
Each AMA carries out its programs in a manner consistent with these goals while
considering and incorporating the unique character of each AMA and its water
users.
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Management Plans
Management plans reflect the evolution of regulation under the Groundwater
Code, assisting in moving each AMA toward their long-term water management
goals. Through the Management Plans, ADWR establishes conservation goals for
each water use sector; agriculture, municipal providers (cities, towns, and private
water companies), and industrial (mining, golf course, electric power generation,
dairies, and feedlots). Examples of these conservation goals include the regulatory
programs for municipal providers. Currently, there are seventy-four large
municipal providers in AMAs regulated under the programs described below. A
large municipal provider is a city, town, private water company or irrigation
district that serves more than 250 acre-feet of water per year. There are also three
institutional providers and thirteen large untreated providers. (Large untreated
providers serve more than 100 acre-feet of water per year.)
 Gallons per-Capita per Day (GPCD) - base program established in the
Groundwater Code and first implemented in the First Management Plan
which became effective in 1987. Fifteen large municipal providers are in
this program, where providers are assigned an annual total gallons per
capita per day allotment.
 Modified Non-Per Capita Conservation Program (MNPCCP) - established
in 2008. Fifty-five municipal providers began regulation under the
MNPCCP in January 2010. This program is mandatory for all large
municipal water providers in AMAs that do not have a Designation of
Assured Water Supply and is optional for providers with a Designation of
Assured Water Supply. The MNPCCP requires participating providers to
adopt a basic public education program and choose one or more additional
water conservation Best Management Practices (BMPs) based on its size.
 Non-Per Capita Conservation Program (NPCCP) - established in 1992.
Three providers are regulated under the NPCCP. This program requires
municipal providers to implement an education program and conservation
programs, and reduce groundwater pumping.
 Alternative Conservation Program (ACP) - One provider is regulated under
the ACP, which is a blend of the GPCD and NPCCP.
 Institutional Provider Program (IPP) - This program was first established in
the Second Management Plan and was continued into the Third
Management Plan. It is designed for large institutional facilities such as
prisons, military installations, schools and airparks that have greater than
90% of their water deliveries for non-residential purposes. There are two
institutional providers in the Pinal AMA and one in the Tucson AMA.
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 Large Untreated Providers (LUP) - Large Untreated Providers provide nonpotable water for landscape irrigation to at least 500 people or at least 100
acre-feet of water. Although eleven irrigation districts are large untreated
providers in the Phoenix AMA and one district is a large untreated provider
in Pinal AMA, there are also nine municipal water providers in the Phoenix
AMA and one municipal provider in Pinal AMA that are untreated
providers.

Regulatory Programs for Large Water Providers in AMAs
GPCD

MNPCCP

NPCCP

Phoenix
AMA

11

27

3

Tucson
AMA

6

18

Pinal AMA
Santa Cruz
AMA
Prescott
AMA
TOTAL

18

IPP

LUP
9

1

5
1

ACP

1

2

50

25

1

9

3

4

2

2

55

3

1

3

10

90

Assured and Adequate Water Supply Program
The Groundwater Code also established requirements to ensure that water supplies
are adequate to meet the long-term needs of new development. The Assured
Water Supply Program requires developers of new subdivisions within AMAs to
demonstrate that sufficient water supplies of adequate quality are physically,
continuously, and legally available for 100 years; that any groundwater use is
consistent with the AMA’s management plan and management goal; and the
financial capability to construct the necessary transmission, delivery, and
treatment facilities is available. Rules associated with this program require the use
of renewable supplies, such as reclaimed water, surface water, and/or water
delivered via the Central Arizona Project (CAP).
For areas outside AMAs, the Adequate Water Supply Program requires that the
developer inform potential buyers of the availability of water for the property, but
does not prevent the sale of property when a 100-year supply is not available
unless the city, town, or county in which the subdivision is located has adopted the
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mandatory water adequacy ordinance discussed later in this report. Requirements
under these programs serve to protect consumers from the sale of subdivided land
that lacks an available long-term source of water.
Recharge Program
The Recharge Program allows injection or infiltration of surface water or
reclaimed water into an aquifer for storage. The Recharge Program has proven to
provide a cost effective way to both store water for future use and to provide an
indirect mechanism to treat and deliver renewable supplies.
Regional Planning
ADWR is also very active in regional water resource planning. Regional planning
efforts include technical studies of specific areas and assistance in projecting
future water needs. ADWR is in the final phase of completing the Arizona Water
Atlas, an extensive inquiry into the state's water availability, to assist local
communities with long-term planning.
Rural Water Initiative
ADWR actively participates in, or facilitates, 17 Rural Watershed Groups that
represent water interests outside of the AMAs. ADWR provides technical and
policy advice and assistance to these groups throughout the year. In some cases,
ADWR attends multiple meetings per month with these groups. The activities of
the different Rural Watershed Groups vary greatly from group to group. In areas
such as the Upper San Pedro (Sierra Vista area), Coconino Plateau (Flagstaff and
surrounding areas), Verde River (Cottonwood to Camp Verde), Yuma, Bullhead
City and Lake Havasu City, and Mogollon Rim (Payson and surrounding areas),
significant water resources planning and development is either proposed or
underway to meet the water supply needs of the area. Through the efforts of these
Rural Watershed Groups, within the last five years, substantial changes in water
law and programs have been made. ADWR has a Special Line Item Appropriation
that is used to fund personnel and water resources investigations to assist the
communities with long-term planning and management programs.
Colorado River Management
The Colorado River is also a very important resource to the State of Arizona also
serving seven states, several Indian tribes and Mexico. ADWR is the state entity
charged with to promoting, protecting, and comprehensively managing Arizona's
annual apportionment of 2.8 million acre-feet of Colorado River water. This
apportionment is important to Arizona's water supply future and is critical to the
state's water management policies.

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Surface Water Management
ADWR's surface water activities are focused in two areas: Adjudications and Dam
Safety and Flood Mitigation.
Adjudications
The State of Arizona is conducting general stream adjudications of water rights in
two major portions of the state: the Gila and Little Colorado River systems and
their tributaries. Adjudications are judicial proceedings conducted in the State
Superior Court for Maricopa and Apache Counties to determine the nature, extent
and relative priority of the water rights of all persons in each river system. This
includes surface water permits and claims to surface water based upon both state
and federal law. ADWR's role in the process is to provide both administrative and
technical assistance to the State Superior Court.
Dam Safety and Flood Mitigation
ADWR is the sole agency responsible for the supervision of non-federal dams to
reduce potential loss of life and damage to property; the management of the
statewide flood warning system; assisting communities that participate in the
National Flood Insurance Program; and establishing State Standards for
Floodplain Management.
Water Rights Administration
Groundwater
In AMAs, groundwater pumping from non-exempt wells requires a groundwater
right or withdrawal authority from ADWR. State law assesses withdrawal fees1
and requires annual groundwater withdrawal and use reports to be filed for
pumping from non-exempt wells within AMAs. Exempt wells2 are not subject to
these requirements. Groundwater use outside AMAs does not require a
groundwater right. However, drilling a well anywhere in the state requires that a
Notice of Intent to Drill be filed with ADWR and also requires the well to be
constructed in conformance with ADWR’s minimum well construction standards.
Surface Water
Surface water is subject to the "doctrine of prior appropriation," meaning that the
first person to put the water to beneficial and reasonable use has a right superior to
later appropriations. Rights to use surface water are designated through a
permitting process at ADWR. Surface water permits may be used to support
1

Withdrawal fees are statutorily required to fund ADWR’s Conservation and Augmentation Assistance
Programs and the Arizona Water Banking Authority.
2
Wells having a maximum pumping capacity of 35 gallons per minute or less.

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claims in the adjudication process. ADWR maintains records related to water
rights in both computer and physical files, which are available to the public.
Hydrology Support
ADWR hydrologists serve as the technical arm of ADWR, collecting and
analyzing statewide water resource data and maintaining the state's Groundwater
Site Inventory (GWSI) database. Hydrologic conditions are calculated and
analyzed in preparing reports in response to legislative and judicial requests,
public inquiries and water management planning efforts. ADWR hydrologists are
often assigned to work on the scientific components of specific research projects
and are also consulted in making determinations on permit applications.
Additionally, the state Legislature has supported ADWR efforts to obtain more
groundwater data around the state through the Automated Monitoring Initiative.
This groundwater data collection effort relies on satellite technology to obtain
water level measurements in areas of the state where groundwater information is
lacking.
Water Banking
In 1996, the Legislature created the Arizona Water Banking Authority (AWBA).
By storing surplus Colorado River water in central and southern Arizona, the
AWBA helps safeguard against future shortages on the Colorado River and assists
in both meeting the state's groundwater management goals and the settlement of
Indian water rights claims. ADWR provides staff support to AWBA.
Water Protection Fund
ADWR also provides staff support for the Arizona Water Protection Fund
(AWPF) Commission, which was created by the Legislature in 1994 to preserve
and enhance flows in rivers and streams and their associated riparian habitats. The
AWPF is lead by a fifteen member commission reflecting a wide range of
interests, including representatives from municipal, agricultural, and industrial
water users as well as from environmental organizations.

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BUDGET
The total ADWR State appropriation for FY 2011-2012 is $12,363,800. This
appropriation is restricted to special line items as follows:
Operating lump sum appropriation
Adjudication support
Assured and adequate water supply
administration
Rural water studies
Conservation and drought program
Automated groundwater monitoring
TOTAL:

$7,443,400
1,212,900
1,771,100
1,139,600
395,700
401,100
$12,363,800

A portion of the funding for ADWR’s budget comes from a $5,698,300 General
Fund Appropriation. The remainder of ADWR’s budget will consist of revenue
from licensing and permitting fees (HB 2007) and a new municipal assessment fee
(SB 1624). During the Fiftieth Legislature of the 1st Regular Session, SB 1624
was passed, which gives the Director of ADWR the authority to assess and collect
a fee from each municipality in the state, based on the population of each
municipality. The fees collected will be deposited into the Water Resources Fund
established by Section 45-117. In 2010, ADWR adopted the temporary fee rules
through a rulemaking exemption from the formal rulemaking requirements in Title
41, Chapter 6, Arizona Revised Statutes, as authorized by HB 2007, during the
Forty-ninth Legislature 7th Special Session, 2010. The permanent fee rules were
approved by the Governor's Regulatory Review Council on April 5, 2011, and
became effective on June 4, 2011.

Fiscal Year
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012

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Total Appropriation
$18,796,600
$20,789,700
$22,763,100
$21,401,6003
$16,879,800
$7,360,300
$12,363,800

Actual FTEs
227
239
236
235
157
97
100

$9,769,300,Water Bank In Lieu of General Fund

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ACCOMPLISHMENTS IN FY 2010-2011
Agency Wide
Providing the Public with access to Online Data (www.azwater.gov)
Over the last year, ADWR has continued its commitment to providing the public
with convenient access to its data and files on-line. This gives the public 24-hour
access to data and also provides them with an alternative to having to contact
ADWR staff. The majority of ADWR’s files, including applications that are
submitted, are available for public viewing through our online Imaged Records
System.
Online web tools that are available include:
 Groundwater Site Inventory (GWSI) - This application can be used to find
groundwater levels, accurate well locations and to view hydrographs.
 Well Registry Web (Wells 55) - This application can be used to find well
registry numbers, owner information, associated water rights, and pumping
data.
 Assured and Adequate Water Supply Mapping Tool – This interactive tool
can be used to obtain data relating to the Assured and Adequate Water
Supply Program and to determine existing and approved demand volumes
throughout the State.
 Online Annual Reporting Tool – This tool allows Annual Water
Withdrawal Use Reports to be filed on-line for AMA Reports, Community
Water System Reports, and Designation of Adequate Water Supply
Reports.
 Public Notice of Recharge Applications in Progress – As applications are
submitted to the Recharge Program, they are posted ADWR’s website for
public review.
ADWR continues to focus on developing new options for the public to utilize,
including application forms that will have the capability to be filed online. Once
fully implemented, this system is planned to be used to directly populate the
Department’s databases without the need for labor intensive data entry.
Water Resources Development Commission
The Water Resources Development Commission (WRDC) was formed by HB
2661 (2010) for the purpose of assessing the current and future water needs of
Arizona with greater focus on meeting the water needs in rural Arizona.
Commission members were selected to represent statewide water users and water
use sectors.

8

The WRDC has been tasked to: (1) compile and consider the projected water
needs of each county in Arizona in the next 25, 50 and 100 years; (2) identify and
quantify the water supplies currently available in each county; (3) identify
potential water supplies to meet additional demands in the same time frame, and
the legal and technical issues associated with using them; (4) identify potential
mechanisms for financing the acquisition, treatment and delivery of water
supplies; and (5) make recommendations regarding further studies or necessary
legislation required for implementation. The WRDC will prepare a report of its
findings and recommendations and submit it to the Governor, the Speaker of the
House, the Senate President and the Secretary of State by October 1, 2011.
To achieve its objectives, the WRDC has formed five committees: Population;
Water Supply and Demand; Environmental; Finance; and Recommendations. The
committees have met numerous times and committee agendas, meeting
summaries, presentations and other work products can be accessed through the
ADWR web site.
Water Management Division
Blue Ribbon Panel on Water Sustainability
Following Governor Jan Brewer’s commitment to collaboration on water resource
issues, former ADWR Director Herb Guenther, former Arizona Corporation
Commission (ACC) Chairman Kris Mayes, and former Arizona Department of
Environmental Quality (ADEQ) Director Ben Grumbles (collectively the
Executive) initiated a statewide effort aimed at improving the long term
sustainability of Arizona’s water supplies through increased conservation and
recycling.
A Blue Ribbon Panel on Water Sustainability (Panel) was formed to identify and
overcome obstacles to increased water sustainability. The Panel was challenged to
provide advice to ADWR, ADEQ, and the ACC on the technical, legal, and policy
aspects of promoting recycling of wastewater, gray water, industrial process water,
and storm water. While there are many opportunities to increase water
conservation and recycling, an early priority of the Panel was to focus on
wastewater reuse through detailed examinations of water quality, regulatory
impediments, infrastructure requirements and public perception challenges that
could limit the increased use of this important water supply.
Membership on the Panel was designed to facilitate discussions between Arizona
stakeholders involved in identifying regulatory impediments and drafting new
strategies to advance water conservation and increase the use of recycled waters.
In December of 2009, the Executive identified and requested members to
participate in this effort based on their knowledge and leadership in Arizona water
9

issues. The Panel membership was composed of 40 members representing large
and small cities, counties, agriculture, industry, Indian Tribes, environmental
interests, Arizona universities, legislative leaders, and other leaders in Arizona
water issues.
On November 30, 2010, the Final Report of the Governor’s Blue Ribbon Panel on
Water Sustainability was released.
The report contains 18 sets of
recommendations organized into five categories: Education/Outreach, Standards,
Information Development & Research Agenda, Regulatory Improvements, and
Incentives. The Final Report is available on the ADWR website.
AMA Water Use Demand and Supply Assessments
The Tucson, Prescott, Phoenix and Pinal AMAs Draft Demand and Supply
Assessments have been published and presented to each of the five AMA
Groundwater Users Advisory Councils. These Assessments are a compilation and
study of the historical water demand and supply characteristics in each of the
AMAs from the year 1985 through 2006. Each Assessment also includes several
water supply and demand projection scenarios to the year 2025, including
scenarios with reductions in surface water due to potential climate change. The
Assessment for the Santa Cruz AMA is scheduled for completion in August of
2011. These Assessments are planned to serve as precursors for the development
of the Fourth Management Plans for the AMAs. Staff also used the Assessment
data as the beginning point for the data, and suggestions, for three of the WRDC
subcommittees.
Assured Water Supply Re-Designation Process for the Phoenix AMA
In September of 2010, several of the cities within the Phoenix AMA were redesignated as having an Assured Water Supply. These cities were Chandler,
Gilbert, Mesa, Phoenix, Scottsdale, Tempe, Avondale, Peoria, Glendale,
Goodyear, Surprise, El Mirage, and Water Utilities Community Facility District
(WUCFD Apache Junction), When ADWR adopted the Assured Water Supply
Rules in 1995, a number of Phoenix AMA water providers applied to become
designated as having a 100-year assured water supply. This designation allowed
growth to occur within designated service areas because their water supplies were
determined to be physically, legally, and continuously available for a 100 year
period, were sufficiently reliant on renewable supplies, and limited groundwater
use. If groundwater was used, the majority of that water needed to be
replenished. The designations were only issued for a period of approximately 10
years and the majority of the designations were due to expire in 2010.
ADWR and the cities initiated this process of re-designation in 2007. ADWR staff
met with the water providers individually and in group settings during the process,
working out details of the applications, data needs, and groundwater modeling
10

results.
After many months of work, the designations were finalized in
September of 2010. The cities of Chandler, Gilbert, Mesa, Phoenix, Scottsdale,
Tempe, Avondale, Peoria, Glendale and WUCFD (Apache Junction) were
designated out to 2025. The City of Surprise and El Mirage were designated out
to 2020 and the City of Goodyear was extended out to 2016.
Restoration of Extinguished Irrigation Grandfathered Rights
ADWR has received permission from the Governor’s Office to amend its Assured
Water Supply Rules to address concerns raised by the agricultural and
development communities regarding agricultural lands within AMAs that had
retired their groundwater rights in exchange for assured water supply
extinguishment credits during the years of 2005, 2006, and 2007, in anticipation of
development occurring on the lands. Due to the economic recession, many of
these lands have not been developed and are not anticipated to be developed in the
near future. Because these rights had been extinguished, the lands no longer had
groundwater rights, and therefore could not be returned to agricultural production,
creating an economic hardship for the landowners. These idle, vacant lands also
create air quality issues and negative aesthetic values for the communities where
they are located. ADWR has initiated a rulemaking proceeding to amend A.A.C.
R12-15-723 to allow the owners of these lands to apply to ADWR to have their
extinguished groundwater rights restored if certain conditions are met. The
Department has filed a Notice of Proposed Rulemaking and a Notice of
Supplemental Proposed Rulemaking with the Secretary of State for this
rulemaking.
Drought Program and Conservation Outreach
ADWR continues to post the monthly and quarterly drought status updates and
facilitate the biannual Governor’s Drought Interagency Coordinating meetings. At
both the November 10, 2010 and May 9, 2011 biannual meetings, it was
recommended that the Arizona’s Drought Emergency Declaration (PCA 99006)
and Drought Declaration for the State of Arizona (Executive Order 2007-10)
remain in place.
ADWR and the Arizona Municipal Water Users Association collaborated on a
new, interactive website for the April 2011 Water Awareness Month campaign.
The campaign included an interactive website and the use of social media to
promote statewide water conservation activities, events, tips, and resources. A
variety of publications and e-newsletters included information about Arizona’s
Water Awareness Month (Water Resources Research Center newsletter, Prescott
and online Scottsdale Republic, e-news, and the Alliance for Water Efficiency),
and staff participated in a presentation for the University of Arizona Water
Sustainability Program Speaker Series.
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Surface Water Division
Flood Hazard Management
Installation of Flood Warning Equipment following Shultz Fire
Following the July 2010, Shultz Fire in Coconino County, ADWR installed three
rain gauges on the east slopes of the San Francisco Mountains and one radio
repeater that transmits the data to the National Weather Service (NWS) office in
Flagstaff and the Arizona Flood Warning System website. The east slopes of the
San Francisco Mountains were severely damaged by Fire. The gauges were
installed rapidly in order to be used by the NWS office in Flagstaff to assist in
issuing warnings and watches during the 2010 monsoon season. The gauges were
installed per Burn Area Emergency Response (BAER) Team recommendations.
The BAER Team included staff from the US Forest Service, Arizona Division of
Emergency Management, USDA Natural Resources Conservation Service,
Coconino County and other entities.
Dam Safety Inspection
ADWR is responsible for the safety of nearly 245 non-federal dams in Arizona.
Arizona regulations require that state personnel inspect high hazard potential dams
annually, significant hazard dams triennially, and low hazard dams every five
years. During inspections, state personnel identify conditions that may impair or
adversely affect the safe operation of the dams. Personnel also review engineering
assessments and monitoring reports submitted for the dams prior to and
subsequent to inspections. After the inspection, a written report is returned to the
owner identifying conditions and recommendations for needed maintenance work.
During 2010, ADWR conducted a total of 98 inspections on non-federal dams
was, including 73 high, 14 significant, and 11 low hazard potential dams.
Dam Safety Permitting
ADWR continues to provide valuable oversight and guidance for potential
rehabilitation projects at twelve deficient dams. ADWR works closely with the
Flood Control District of Maricopa County (FCDMC) and Magma Flood Control
District in Pinal County to expedite review and processing of construction permit
applications in order to secure millions of dollars in time-sensitive federal funding.
Three of these project applications were submitted and approved for construction
to commence the following year.
Rio Salado Dam (Tempe Town Lake)
In March 2010, ADWR had approved a permit for the replacement of the four
bladders of the downstream Rio Salado Dam; however, construction work was
delayed for several months due to flows in the Salt River. On July 20, 2010, one
of the four inflatable bladders burst, causing the release of the lake’s contents into
12

the Salt River bed. ADWR staff worked diligently with the City of Tempe to
assist them with obtaining a permit to begin construction of the replacement
structure. On July 30th, ADWR approved changes to the construction plans and on
September 30th, granted the City the approval to refill the lake. The City of Tempe
successfully implemented their Emergency Action Plan and no injuries or
damages were reported.
Community Assistance for National Flood Insurance Program
ADWR performed agreed-upon work tasks for its Community Assistance
Program–State Support Services Element (CAP-SSSE) grant from the Federal
Emergency Management Agency (FEMA).
ADWR prepared Community
Assistance Visit (CAV) Reports for ten Arizona communities participating in the
National Flood Insurance Program (NFIP). The purpose of a CAV is to evaluate a
community’s overall floodplain management program. The CAV starts with a
field tour to photograph and to document development within the FEMA 100-year
floodplain. A CAV meeting is then conducted with community officials involved
in the floodplain management program, and the development and permitting
process. A CAV report, documenting the findings, is sent to the community and
to FEMA Region IX.
Risk MAP Partnership
ADWR continued its collaboration as a Cooperating Technical Partner with
FEMA in the Risk MAP program. The vision for Risk MAP is to deliver quality
data that increases public awareness and leads to action that reduces risk to life
and property. Through this collaboration, ADWR helps to identify flood hazards,
improve flood mapping, and support coordination and communication with FEMA
Region IX and local community floodplain officials in Arizona’s 103 NFIP
participating communities.
Assistance to the General Stream Adjudications
ADWR completed several important reports and analyses requested by the
Superior Court and Special Master, including:
 ADWR served new use summons to potential claimants. They were served
to new applicants who filed notices of intent to drill wells and applications
for surface water rights between January 1, 2009 and December 31, 2009.
In the fall of 2011, ADWR will serve new use summons to potential
claimants who filed new applications between January 1, 2010 and
December 31, 2010.
 ADWR prepared and filed a report in the Gila River Adjudication
responding to comments and objections on its June 2009 Subflow Zone
Delineation Report for the San Pedro River Watershed. ADWR’s 2011
report summarizes the technical comments and objections received and
13

presents ADWR’s responses, together with supporting tables, figures and
appendices.
 A supplemental report was prepared and filed, that addresses certain land
ownership issues associated with the U.S. Bureau of Land Management’s
federal reserved right claims for the San Pedro National Riparian
Conservation Area (SPRNCA), which is located within the San Pedro River
Watershed. The SPRNCA land ownership report includes a description of
the project area, data sources and analysis, and ADWR’s findings together
with supporting figures and appendices.
 ADWR commenced field work to verify existing de minimis uses meeting
the criteria for certain small domestic, stockpond, and stockwatering uses in
the Sands Group of Cases, as directed by the Special Master to the Gila
River adjudication court.
Hydrology Division
Groundwater Modeling
The Groundwater Modeling Section completed major studies and published the
following:
 Modeling Report No. 22; the 100-year Predictive Scenarios used for the
Determination of Physical Availability in the Phoenix AMA
 Modeling Report No. 23; Geological Update for the Combined Salt River
Valley and Lower Hassayampa Regional Groundwater Flow Model Areas
in the Phoenix AMA
The Groundwater Modeling Section also worked on the following groundwater
models and projects:
 Updated and improved the Tucson AMA Model
 Continued building and calibrating the Pinal AMA Model
 Updated and improved the Prescott AMA Model
 Continued building and incorporating new data into the Phoenix AMA
Model (combined the Salt River Valley and Hassayampa Models)
 Constructed and documented the Assured Water Supply Baseline Model
Scenario for Assured Water Supply applications for the Phoenix AMA
 Calculated the water in storage and projected water levels in the Buckeye
Water Logged Area
Field Services
The Basic Data Unit conducted approximately 2,700 water level measurements
statewide at ADWR-Groundwater Site Inventory Index well locations, and at
special monitoring network locations in the Coconino Plateau, Big Chino basin,
Payson/Tonto basin area and Santa Cruz AMA.
14

Performed new installations, automated water level data collection, operation and
maintenance of over 120 statewide automated monitoring sites including wells in
state and national parks, on Arizona State Trust Lands, BLM land and installed in
various irrigation district, industrial, municipal and private wells.
The Geophysics and Survey Unit completed several gravity and subsidence studies
and published reports and maps on Advanced Land Observing Satellite Data for
Land Subsidence Monitoring in Arizona, Alaska Satellite Facility News and Notes
Volume 6, Number 4, Fall 2010 Issue.
Colorado River Management
Shortage Sharing and Water Management Agreement with Mexico
On December 10, 2010 the United States and Mexico approved Minute 318 in
response to extensive damage suffered by Mexico to its water delivery
infrastructure and farmland as a result of a major earthquake in April of 2010. The
International Boundary and Water Commission (IBWC) facilitated discussion
between the US and Mexico to develop a Treaty amendment to allow for
immediate water management strategies to address Mexico’s inability to take full
delivery of its Colorado River entitlement as provided in the 1944 Treaty with
Mexico. ADWR participated in a process, along with the IBWC, the Bureau of
Reclamation, the other Basin States, and Mexico to find mechanisms that would
allow Mexico to reduce its water deliveries through 2013 and allows Mexico to
request recovery of these volumes at a later date. This agreement would assist
Mexico by avoiding a loss of a portion of its annual allotment and would provide a
tangible example of the type of Bi-National cooperation that is in the clear
interests of both parties.
Because of the Bi-national cooperation exhibited in the prompt enactment of
Minute 318 (and the accompanying Minutes 314 and 317, which address
enactment of emergency deliveries to Mexico and long-term planning), the US
(including ADWR) and Mexico are now participating in a bi-national process to
develop consensus on comprehensive water management, including sharing
shortages, on the Colorado River. The IBWC has put a very short timeline on
these activities and is moving toward completion in late 2011 or early 2012.
Colorado River Basin Water Supply and Demand Study
Significant effort has been devoted to the development of the Colorado River
Basin Supply and Demand Study. The Study is a collaborative effort of the seven
Colorado River Basin States, the Bureau of Reclamation, Indian Tribes, and other
interested entities to identify projected water supply and demand imbalances
throughout the Basin through the year 2060 and to analyze potential mitigation
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measures. The first Interim Study Report was released in June 2011 for public
review and comment. The Final Report will be issued in mid 2012.
CRITICAL CHALLENGES/OPPORTUNITIES
Issue 1: Reduction of Groundwater Reliance in the Five AMAs
The Groundwater Code establishes management goals for each of the AMAs. For
the Prescott, Phoenix, and Tucson AMAs, the goal is to reach safe-yield by 2025.
Safe-yield is accomplished when no more groundwater is withdrawn from the
aquifer than is annually replaced. The consequence of not achieving safe-yield
will be to threaten the long-term availability of water supplies for existing homes,
industries and communities in AMAs. The Pinal AMA management goal is to
allow development of non-irrigation uses and to preserve existing agricultural
economies for as long as feasible, consistent with the necessity to preserve future
water supplies for non-irrigation uses. The Santa Cruz AMA management goal is
to maintain a safe-yield condition in the AMA and to prevent local water tables
from experiencing long-term declines.
One tool to assist the AMAs to achieve their goal is the adaption of a series of five
groundwater management plans to be implemented in sequence from 1980 through
2025. ADWR is currently initializing the Fourth Management Plan, which it
anticipates completion in 2013. The Code mandates the inclusion of progressively
more restrictive groundwater conservation requirements and methods to
supplement groundwater supplies from the First Management Plans through the
Third Management Plans. The Code is specific as to what programs must be
included in each sequential management plan and ADWR has met the statutory
mandates requiring the establishment of a water rights system and the continuing
development and refinement of mandatory conservation requirements for
industrial, municipal, and agricultural water users. For subsequent management
plans, the statutory requirements are more vague, which implies the need to
conduct a thorough assessment of the status of each AMA prior to the
development of the Fourth Management Plan.
Phoenix AMA
The Phoenix AMA is currently in safe-yield, which is a significant achievement in
the largest populated section in the state. In addition to reducing groundwater
pumping, communities and individuals have made substantial investments in the
utilization of renewable water supplies in this AMA, both directly and through
recharge and recovery, water banking, water recycling, and utilization of
renewable water supplies. ADWR and its regulated community have made large
strides in ensuring there are sufficient supplies for future development and to
provide back-up supplies for times when surface water supplies are limited. After
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review of the Phoenix AMA Assessment, it is clear that the challenge is to
maintain this safe-yield condition in this AMA. Facilitating the delivery of
renewable water supplies into areas where historic groundwater declines have
occurred will be an important focus of ADWR’s efforts in this basin and will assist
in ensuring that current and future citizens will have a long-term assured water
supply.
Tucson AMA
The Tucson AMA has been a model for the efficient use of water supplies, which
is important in light of limited availability and direct utilization of renewable
supplies. While the recycling of water is an important element of the Tucson
AMA nearly achieving safe-yield, more can be done to increase the use of this
source of water both for direct uses and recharge and recovery efforts. The focus
of our efforts in this AMA will be on increasing the direct use of Central Arizona
Project water and recycled water. This will be the key to achieving and
maintaining safe-yield in this AMA.
Pinal AMA
The goal of the Pinal AMA is unique; there is recognition of the importance of
agriculture to the economy of this region. However, there is also a need to
preserve water for current and future non-agricultural uses. In 2007, a major effort
was culminated to recognize the need to preserve water supplies for future
municipal and industrial uses in the modifications to the Pinal AMA Assured
Water Supply Rules. These modifications were a community-driven effort
supported by the findings of the Governor’s Water Management Commission and
the Third Management Plan water budget and analysis. Because of the recent
downturn in the economy, there has not been a real opportunity to evaluate the
impact of the potential savings from the rule modifications. Until additional time
has elapsed and growth increases in this AMA, efforts should be focused on
ensuring there are continued opportunities for the direct use of renewable water
supplies in the agricultural sector as well as securing renewable water supplies for
future municipal and industrial development.
Santa Cruz AMA
The Santa Cruz AMA was split from the Tucson AMA in 1994 in recognition of
its unique hydrology and the importance of the Santa Cruz River to its economy.
The goal of this AMA is to maintain its current safe-yield status and protect the
water levels within its boundaries. With significant residential development in this
area and without Assured Water Supply Rules that reflect its unique goal, the
ability to achieve this management goal will be in jeopardy. The Fourth
Management Plan for this AMA should be focused on developing mechanisms
such as recharge of underutilized reclaimed water and well spacing requirements
that reflect the goal of protecting existing water levels.
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Prescott AMA
The Prescott AMA was declared by ADWR to be out of safe-yield in 1999. Its
management goal is the same as the Phoenix and Tucson AMAs, which is to
achieve safe-yield by 2025. The availability of renewable water supplies is
limited in this AMA, although opportunities do exist for the use of renewable
water supplies and reclaimed water through aquifer augmentation, direct delivery
or through recharge and recovery. The proliferation of exempt wells in this AMA
is also a challenge to maintaining the availability of groundwater supplies. The
importation of water from the Big Chino sub-basin of the Verde River
groundwater basin is a tool provided in statute to assist this AMA in achieving its
management goal. Efforts should be focused on developing long-term reliable
renewable water supplies and increased efficiencies of existing uses of water in
this AMA.
Throughout the AMAs, ADWR will approach the Fourth Management Plans more
as Plans for success than a document that simply identifies the statutory
requirements for the main water using sectors. In these Plans ADWR, in
cooperation with regulated communities and the public, will build on past
successes but recognize that additional observations should be considered,
including:
1. Conservation will only get us so far. We will continue to address
meaningful conservation requirements, but also will review the
“incentives” for utilization of renewable water supplies, reduce the
complexity and the administrative workload necessary to implement these
programs, and be diligent in their enforcement.
2. Have serious discussions regarding the AMA goals and the implications to
the State of not reaching them.
3. Consider different approaches to water management among the AMAs,
recognizing local conditions, economic, and community values.
4. Address the limitations of the Management Plans and underlying
authorities as we determine what course of action to follow.
5. Recognize sub-area issues and consider alternative management strategies
to address areas where conditions are positive and conditions are negative.
6. Develop, in cooperation with local water users and other water resource
entities (CAWCD, AWBA, CAGRD, etc), a long-term water management
strategy, tailored to each AMA, identifying specific actions and resources
that will be required to accomplish this strategy.

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Issue 2: Ensuring Long-Term Water Supplies for Future Generations
One of ADWR’s most important roles is securing water supplies for future
generations. As such, when the Groundwater Code was adopted in 1980, it
changed the water adequacy requirements for new subdivisions within AMAs by
requiring developers of subdivided land in an AMA to obtain a determination of a
100-year assured water supply from ADWR before the plat for the subdivision can
be recorded and a public report can be issued by the Arizona Department of Real
Estate (“ADRE”). A.R.S. § 45-576. In order to obtain a determination of assured
water supply, developers must demonstrate that a water supply of adequate quality
is physically, continuously and legally available for 100 years, that the developer
has financial capability to construct any necessary delivery and treatment
facilities, and that any groundwater use is consistent with the management plan
and management goal of the AMA.
Except for counties and municipalities that have adopted mandatory adequacy
requirements as allowed by A.R.S. §§11-806.01(F) and 9-463.01(O), areas outside
AMAs are not subject to the assured water supply requirements, but remain
subject to the adequacy provisions of A.R.S. § 45-108. Limited consumer
protections in areas outside of AMAs provide residents with less assurance of a
future water supply than residents within AMAs. Consumer protection is weaker
in two ways. First, outside AMAs, only the first purchase of a new subdivision lot
must receive notification of the sufficiency of the water supply which could allow
subsequent purchasers of homes found to have inadequate supplies with no notice
of this determination. Within AMAs, new subdivisions must have a sufficient
water supply before any lots are sold. Second, well spacing is regulated in AMAs
but is not regulated in areas outside AMAs. Thus, outside AMAs, new large wells
may be drilled near a well serving a subdivision, causing the subdivision well to
go dry.
The limited consumer protections in areas outside AMAs raise several concerns
regarding the water supply on which those homeowners rely:
 Need for more assurance of sufficient water – The adequate water supply
provisions, applicable outside AMAs, require ADWR to issue a report on
the sufficiency of the water supply, but do not prohibit the development or
sale of subdivision lots in the absence of sufficient water. If ADWR
determines that the water supply is insufficient, the developer is required
only to notify potential buyers by displaying the water supply information
in promotional materials and subdivision lot sales contracts. Only the
original purchaser is entitled to this notification regarding the water supply,
as there is no requirement that the water supply information be disclosed to
subsequent purchasers when a subdivision lot is resold. As mentioned
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above, this contrasts with the assured water supply provisions applicable
within AMAs, which prohibit the development or sale of subdivisions that
do not have a sufficient 100-year water supply, thereby protecting
consumers from purchasing subdivision lots with insufficient water to meet
their needs.
In 2007, SB 1575 was enacted to address the inequity between the two sets
of requirements in response to recommendations from the Statewide Water
Advisory Group (SWAG). SB 1575 gave specific authority to cities, towns
and counties outside AMAs to require developers within their jurisdictions
to demonstrate a 100-year adequate water supply before platting and selling
lots. A county may adopt such a requirement only upon the unanimous vote
of the board of supervisors. To date, only Cochise County, Yuma County,
the Town of Patagonia, and the City of Clarkdale have adopted such
requirements. All other areas of the state outside AMAs are still regulated
under the original adequacy provisions which allow the sale of subdivided
land with findings of water supply inadequacy.
 Coordinating Long-Range Statewide Planning - The need for statewide
regional planning is an ongoing issue. This includes all areas of the state
including outside of AMAs, rural Arizona, and areas along the Colorado
River. The WRDC has been tasked with assessing the current and future
water needs of Arizona, focusing on meeting the water needs of rural
Arizona.
WRDC will prepare a report of its findings and
recommendations. ADWR has a leadership role and is coordinating this
effort.

Issue 3: Surface Water Permitting
ADWR lacks authority to: bring administrative enforcement actions for violations
of the state’s surface water laws; manage the use of surface water resources
pursuant to water rights or claims; or resolve disputes between surface water users.
When ADWR receives a complaint that a person is violating surface water laws, it
attempts to persuade the violator to comply. If that fails, ADWR requests the
appropriate County Attorney or the Attorney General investigate and take proper
enforcement action. Certain violations of the surface water laws have been
classified as class 2 or 3 misdemeanors and may be prosecuted by local law
enforcement agencies, the county attorney or the Attorney General. See A.R.S. §§
45-112 and 45-190. In some cases, the public is frustrated by ADWR’s inability
to administer the law and resolve surface water complaints.

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CONCLUSION
ADWR has continued to make progress to secure long-term dependable water
supplies for Arizona’s future, despite challenges presented by budget limitations
and the reduction in staffing.
Challenges to providing a sustainable water supply are numerous. Competition for
water throughout the Southwest continues to increase as neighboring states
experience similar rates of growth. Arizona must continue to be vigilant to protect
its water rights, particularly its rights to Colorado River water. It is essential that
our State continue to play a prominent role in Colorado River water supply,
operations and allocation issues.
Arizona’s water is also used or claimed by a number of Indian tribes whose legal
rights to quantities of water currently are the subject of settlement negotiations or
litigation as part of the adjudication of water rights within the State. The outcome
of these proposed settlements and settlement negotiations will significantly impact
the State’s water budget. In addition to water supply needs for human use,
environmental protection issues are of substantial concern and may affect
Arizona’s future water supply availability.
The water needs of Arizona’s rural areas, where few renewable supply options
exist, are becoming urgent. The Water Development Commission formed by HB
2661 (2010) and appointed by the Director, continues to focus on meeting the
water needs in rural Arizona.
Substantial progress has been made within central Arizona in moving toward a
sustainable water future.
Although, challenges still exist in rural Arizona,
ADWR’s long-term view of water management needs has served the State well.

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