Phoenix Hit the Limits of Groundwater. Now It's Rationing Growth.
Arizona stopped approving groundwater-only subdivisions around Phoenix — a first-of-its-kind link between water scarcity and the housing market.
By AGUACYCLE News Room
Metro Phoenix has long grown on a foundation of groundwater. In 2023, the state said that foundation has cracks: it would stop approving new subdivisions that rely solely on groundwater after a model showed demand outstripping a 100-year supply.
Water as a growth constraint
The decision didn't halt growth — projects with assured renewable supplies or recycled water can still proceed — but it formally tied the region's expansion to its water budget for the first time. Developers are now racing to secure alternative supplies.
Reuse to the rescue
Recycled water is central to the response. Phoenix-area utilities already use treated effluent to cool the Palo Verde nuclear plant and are expanding advanced purification to add a drought-proof drinking supply that doesn't draw down the aquifer.
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