“This ruling is another example of the need in Arizona for properly promulgated water regulation. Developers aren’t opposed to updated groundwater regulations that will ensure a prosperous future. But such regulation needs to be done properly. The rule-making process allows stakeholders to participate. Hopefully, this ruling will encourage ADWR to use that process and avoid unilaterally imposing restrictions in the future.”
– Riley Snow, chairman of Rose Law Group’s water law department
By Howard Fischer | Arizona Capitol Times
Key Points:
- Judge rules state agency imposed illegal “tax” on developers
- Developers still need 100-year water supply to build in certain areas
- The ruling may have significant implications for future housing development and affordability
A state agency acted illegally when imposing what developers have dubbed a “tax” to build in areas with scarce sources of water, a judge has concluded.
In a highly-technical ruling, Maricopa County Superior Court Judge Scott Blaney said the Arizona Department of Water Resources does have the rightful power to make the rules deciding when a planned development in one of the state’s Active Management Areas complies with legal requirements to show a 100-year supply of water.
But what the agency does not have, the judge said, is the ability to withhold legally required building permits unless the developer can show it has access to not just the water it needs for the next 100 years, but another 33% on top of that.
