- Arizona Water Company received a 100-year Assured Water Supply designation on March 3, 2026.
- The designation was made possible through the state’s new Alternative Designation of Assured Water Supply program.
- Officials say the move could support construction of more than 80,000 homes in Pinal County.
- The program is intended to protect groundwater while encouraging economic growth.
Monday, March 9, 2026 — Arizona officials marked a significant step in the state’s long-running effort to balance growth with water security in early March 2026.
On March 3, 2026, the Arizona Department of Water Resources
formally granted Arizona Water Company a Designation of Assured Water Supply for its Pinal Valley service area. The designation was recognized the following day during a ceremony in Casa Grande attended by Governor Katie Hobbs, local officials, and water industry representatives.
The approval represents the first new 100-year water supply designation for the Pinal Active Management Area in more than two decades, according to state and company announcements. The designation confirms that Arizona Water Company has demonstrated the ability to provide a reliable water supply for at least 100 years to both existing customers and future development.
The decision is expected to support housing construction and economic growth in parts of Pinal County while maintaining protections for groundwater supplies.
Understanding the Assured Water Supply Program.
Arizona’s Assured Water Supply Program, administered by the Arizona Department of Water Resources, was created to prevent communities from expanding faster than their long-term water supplies.
Under the program, developers and water providers in designated growth areas must demonstrate that sufficient water will be available for at least 100 years before new subdivisions can move forward.
To meet the requirement, utilities typically rely on a mix of water sources. These may include surface water, treated wastewater known as effluent, and other renewable supplies. The goal is to reduce heavy dependence on groundwater pumping and ensure a stable supply far into the future.
A New Path Through the ADAWS Program.
The designation received by Arizona Water Company was made possible through a newer policy known as the Alternative Designation of Assured Water Supply, often called ADAWS.
State leaders developed the ADAWS approach after groundwater modeling suggested some areas could struggle to meet long-term supply requirements under the existing framework. The updated pathway allows water providers to qualify for a designation if they can show a plan to develop a diversified water portfolio and reduce reliance on groundwater over time.
Governor Katie Hobbs said the designation represents progress in addressing Arizona’s water challenges.
“This ADAWS designation is a critical step to building homes, growing our economy, and protecting our water for generations,” Hobbs said in a March 4, 2026, news release.
Pinal County’s Long Wait for Water Certainty.
The designation is particularly significant for Pinal County, an area that has experienced rapid growth while also facing water supply constraints.
Local officials have spent years searching for solutions after development slowed due to groundwater limitations and regulatory uncertainty.
Pinal County Supervisor Stephen Miller said the designation could help stabilize housing prices and encourage future development.
“Without Arizona Water Company’s designation, we live in our past, and home prices skyrocket for lack of new subdivisions,” Miller was quoted in Gov. Hobbs’ March 4, 2026, statement.
The designation applies to Arizona Water Company’s service area around Coolidge, Casa Grande, and nearby communities. Company officials say it supports both current customers and future growth.
Housing and Economic Growth.
State officials estimate that the designation could support construction of more than 80,000 new homes across the region.
For communities such as Casa Grande, the announcement may provide a clearer path for planned residential and industrial projects.
Casa Grande Mayor Lisa Fitzgibbons said the designation could help communities attract new employers and keep housing more affordable.
Local developers have also described the decision as a major step toward resolving the region’s long-standing water planning challenges.
A Continuing Water Policy Debate.
The announcement comes at a time when Arizona and other Western states are facing increasing pressure on water supplies due to population growth and ongoing drought conditions in the Colorado River Basin.
Programs such as the Assured Water Supply framework are intended to manage growth carefully by requiring long-term water planning before new development can occur.
State officials and water providers say the ADAWS program represents one approach to maintaining that balance while allowing communities to continue growing.
Arizona Water Company President Fred Schneider said the designation reflects years of collaboration among utilities, policymakers, and water experts.
“By securing our designation and committing to developing a diverse water supply portfolio, we are ensuring that Coolidge, Casa Grande, and the surrounding Pinal County areas can meet current and future demands,” Schneider said in the company’s announcement.
Image via the Arizona Department of Water Resources’ announcement.
