The Arizona House of Representatives has filed a lawsuit against the Arizona Department of Water Resources over regulations that include a controversial groundwater tax. Lawmakers argue that the tax is increasing the cost of new homes, according to the Arizona House of Representatives.

The Arizona Legislature has criticized the Arizona Department of Water Resources for increasing developers' water reservations by 33.3% without legislative approval. This decision, aimed at distributing the water usage burden to future homeowners, has faced opposition from Speaker Montenegro and groups like the Home Builders Association of Central Arizona. Montenegro stated, "This is government overreach at its worst," pointing out the financial impact it could have on Arizona families, as reported by the Arizona House of Representatives.

The Arizona House is challenging the Arizona Department of Water Resources "Alternative Path to Designation of Assured Water Supply" rules, which were implemented without significant community input or proper legislative process. Speaker Montenegro stated, "The department has gone rogue, acting as if it is above the law and unaccountable to the people of Arizona." The lawsuit aims to prevent these policies from increasing home prices and impacting Arizona residents. Montenegro added, "This is exactly why our House Republican Majority Plan focuses on reining in executive overreach, making housing affordable, and lowering taxes for Arizonans." The Arizona House is working to limit executive power and address housing costs, as stated by the Arizona House of Representatives.