- Phoenix expects to enter Stage 2 of its Drought Management Plan in January 2027.
- Residents and businesses will be asked to voluntarily reduce water use by 5 percent.
- Higher-volume water customers could face a temporary drought surcharge.
- The city plans to increase financial incentives for grass removal, irrigation upgrades and leak repairs.
- Colorado River shortages could reduce Phoenix’s deliveries by approximately 30 percent.
Wednesday, November 11, 2026 — Phoenix is preparing to tighten water conservation measures as major cuts to Colorado River supplies approach in 2027.
City officials outlined their plans during a November 10, 2026, City Council policy session, including voluntary water reductions, increased conservation incentives and a temporary surcharge for customers who use large amounts of water.
The city expects to move into Stage 2, known as a Water Warning, of its Drought Management Plan in January 2027.
For Phoenix residents, the change does not mean water service will be interrupted. City officials say customers can continue to expect safe, reliable drinking water, although Phoenix will need to depend more heavily on backup supplies.
The city has been under Stage 1, or Water Alert, since June 2022.
Why Phoenix Is Taking Action.
Phoenix receives approximately 40 percent of its annual water supply through the Central Arizona Project, the canal system that delivers Colorado River water to central and southern Arizona.
New federal operating guidelines, scheduled to take effect January 1, 2027, will reduce Colorado River deliveries to Arizona, California and Nevada by a combined 1.25 million acre-feet annually during 2027 and 2028.
The three states are negotiating an agreement to divide those reductions.
Under the proposed arrangement, Arizona would receive a 27 percent reduction, California a 10 percent reduction, and Nevada a 16 percent reduction. Arizona’s share would include a 760,000 acre-foot reduction in deliveries through the Central Arizona Project.
For Phoenix, the changes could mean approximately 30 percent less Colorado River water.
Recent rainfall has improved water storage in the Salt and Verde River system, but those gains do not eliminate the reductions in Colorado River supplies.
“We’ve spent decades preparing for the challenges we’re facing today, and those investments have put us in a good position,” Mayor Kate Gallego said
in the city’s November 10 announcement. “But the cuts from the federal government require us to take further action.”
What Stage 2 Means for Phoenix Residents.
Phoenix’s Drought Management Plan has four levels:
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Stage 1: Water Alert.
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Stage 2: Water Warning.
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Stage 3: Water Emergency.
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Stage 4: Water Crisis.
Stage 2 is used when normal water supplies are no longer sufficient without additional resources or measures to reduce demand.
Under the planned Stage 2 response, Phoenix will ask households and businesses to voluntarily reduce water consumption by 5 percent.
City departments will be asked to reduce their water use by 10 percent.
The city is encouraging customers to take several practical steps, including repairing leaks, adjusting outdoor watering schedules to match the weather, replacing unused grass with desert landscaping and installing water-efficient equipment.
The measures are intended to reduce the amount of water Phoenix must withdraw from its backup supplies.
Higher Water Users Could Pay a Drought Surcharge.
One of the most noticeable changes would be a temporary drought surcharge for customers who use larger amounts of water.
The proposed charge is $2.10 for every additional unit of water consumed above a monthly threshold. One unit equals 748 gallons.
The thresholds would depend on the type of customer.
| Customer type | Monthly threshold | Additional charge |
|---|---|---|
| Residential | More than 20 units (14,960 gallons) | $2.10 per additional unit |
| Commercial | More than 300 units (224,400 gallons) | $2.10 per additional unit |
| Industrial | More than 15,000 units (11,220,000 gallons) | $2.10 per additional unit |
The surcharge would apply only to water used above the monthly threshold, not the customer’s entire water consumption.
For example, a residential customer using 25 units of water in one month would pay an additional $10.50 for the five units exceeding the threshold.
Most Phoenix water customers would not pay the surcharge.
Based on current water use, city officials estimate it would affect approximately 16 percent of residential monthly bills, 7 percent of commercial bills, and 1 percent of industrial bills.
The surcharge would take effect only after Stage 2 is declared.
Preliminary estimates suggest the charge could generate approximately $40 million. The money would help pay for conservation programs and additional water supplies.
More Money Available for Water Conservation.
Alongside the proposed surcharge, Phoenix plans to increase financial assistance for customers who take steps to reduce water consumption.
Three changes are planned:
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Grass removal: Increase the incentive from $2 to $4 per square foot.
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Smart irrigation controllers: Increase the incentive from $75 to $150.
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Leak repairs: Establish a new $100-per-year incentive.
The city also plans to expand its no-cost water-efficiency consultations for residents, businesses and homeowners associations.
During these consultations, city conservation staff review water use and identify opportunities to improve efficiency.
“Water conservation is a shared responsibility, but we also recognize that families, neighborhoods and businesses have different needs and resources,” Vice Mayor Kesha Hodge Washington said.
She emphasized the importance of providing customers with information, tools and assistance to help them conserve.
Where Phoenix Will Find Additional Water.
Phoenix is pursuing a three-part approach to address reduced Colorado River deliveries: use backup supplies, develop new water resources and reduce demand.
In the short term, the city plans to rely on several existing resources.
These include water from the Salt and Verde River systems, water stored in the Arizona Water Bank and the Tucson area, and groundwater.
The city is also using groundwater recovery infrastructure and regional water partnerships to help offset reductions.
However, some of these backup supplies are limited.
“Stored water and other backup supplies give Phoenix important flexibility as Colorado River deliveries decline,” Water Resources Management Advisor Max Wilson said. “But those reserves are not unlimited. We need to manage them carefully while developing new supplies and helping customers conserve.”
New Water Projects Are Part of the Longer-Term Plan.
Phoenix is also investing in projects intended to provide additional water in future years.
One of the largest efforts is Pure Water Phoenix, the city’s advanced water purification program.
Construction is underway at the Cave Creek Water Reclamation Plant, with water deliveries to customers anticipated in 2029.
The city is also planning advanced purification facilities at North Gateway and 91st Avenue.
Another effort involves expanding Bartlett Dam to increase water storage capacity on the Verde River. Phoenix is working with Salt River Project and other partners on that proposal.
The city is also participating in the Secure Water Arizona Program, which is intended to develop water-sharing transactions that could help address current and future shortages.
Together, these projects are part of Phoenix’s effort to develop water supplies beyond its existing Colorado River deliveries.
Conservation Becomes More Important in 2027
Phoenix officials say the city has spent decades investing in infrastructure, water storage and conservation programs to prepare for shortages.
The expected Colorado River reductions mean those preparations will face a new test in 2027.
Water Services Director Brandy Kelso said conservation will help Phoenix preserve its remaining supplies while longer-term projects move forward.
“Conservation is essential because every gallon we save reduces the amount we need to withdraw from our backups,” Kelso said.
For now, the planned changes focus on voluntary reductions, additional conservation assistance and higher charges for customers whose water use exceeds the proposed thresholds.
The city expects to enter Stage 2 in January, as the new Colorado River operating guidelines take effect.
Sources.
1. City of Phoenix, Mayor’s Office and Water Services Department. “Phoenix Prepares for Stage 2 of Drought Management Plan Amid Deep Colorado River Cuts.” November 10, 2026. Official city news release.
2. City of Phoenix, City Council Policy Session. “Phoenix Water Supply and Demand Update – Citywide.” Agenda Item No. 1, November 10, 2026. Three-page City Council report.
