Governor Katie Hobbs has signed groundbreaking legislation that will strengthen water management in Arizona's fastest-growing region, extending crucial groundwater replenishment requirements to Pinal County communities. The bipartisan bill represents a significant step toward sustainable water practices as the state grapples with ongoing drought and unprecedented growth pressures.
New Law Brings Pinal County Under Stricter Water Rules
HB 2753, signed by Governor Hobbs on May 23, 2025, requires municipal water providers in the Pinal Active Management Area (AMA) to ensure 100 percent replenishment of groundwater used in their service areas. According to the Governor's Office, the legislation will take effect 90 days after the current legislative session concludes. This brings Pinal County under the same stringent regulations that have governed the Phoenix AMA for years, ensuring that every drop of groundwater pumped must be replaced through the Central Arizona Groundwater Replenishment District (CAGRD).
As reported by Hoodline, Representative Teresa Martinez, who sponsored the legislation, emphasized its critical importance: "The lifeline for any community is water and this is going to be very helpful in preserving that lifeline." Senator T.J. Shope, a key supporter of the bill, highlighted that enrolling service areas into CAGRD represents "one of the critical pieces for this approval."
Key Legislative Champions Behind the Bill
The legislation was shepherded through the Arizona Legislature by Representative Teresa Martinez (R-District 16), a Casa Grande native whose district includes much of Pinal County. According to Wikipedia, Martinez was born and raised in Casa Grande and has deep ties to the mining community—her father worked at the San Manuel Mine. She previously served on the staffs of Congressmen Rick Renzi and Paul Gosar and worked as political director for the Arizona Republican Party.
Senator Thomas "T.J." Shope (R-District 16) played a crucial role in advancing the bill through the upper chamber. As noted by Wikipedia, Shope represents a heavily rural district encompassing parts of Gila and Pinal counties, including Coolidge, Globe, Superior, Florence, San Tan Valley, and portions of Casa Grande and Eloy. His family background includes deep roots in mining—his grandfather worked for thirty-two years as a miner in Superior and San Manuel and was a member of the United Steelworkers.
Understanding CAGRD and Water Replenishment
The Central Arizona Groundwater Replenishment District serves as a critical mechanism for sustainable water management in Arizona's most populated areas. According to the Central Arizona Project, CAGRD was created in the mid-1990s to help water providers and landowners comply with Arizona's groundwater laws by replenishing groundwater pumped by its members. The organization operates under a 10-year Plan of Operation and is financially separate from CAP, funded solely by its members through assessments and fees.
CAGRD explains that there are two types of members: Member Lands, where subdivisions enroll, and Member Service Areas, where water provider service areas enroll. The district replenishes aquifers through recharge processes, sending water to basin facilities where it percolates through soil to the aquifer, or to farms for agricultural use.
Regional Water Management Challenges
Arizona's water management system has faced increasing strain as the state confronts a historic drought and growing population. According to the Central Arizona Project, the Colorado River Basin continues to experience drought exacerbated by climate change impacts, with Arizona facing a Tier 1 shortage in 2025 that requires a 512,000 acre-foot reduction to the state's Colorado River water supply.
The Pinal County region has experienced particular challenges with rapid population growth. As Hoodline previously reported, Pinal County's population is projected to reach nearly 300,000 by 2060, making strategic water planning essential for sustainable development. Communities like Casa Grande and Coolidge have been working to balance growth with water security.
Broader Context of Arizona's Water Policy
This legislation comes amid Governor Hobbs' broader push for comprehensive water reform across Arizona. In January 2025, the Governor's Office announced the Rural Groundwater Management Act, which would create new flexible frameworks called Rural Groundwater Management Areas (RGMAs) to protect groundwater in rural communities. However, that broader legislation has faced challenges in the Legislature.
According to the Governor's Office, Hobbs also announced a $60.3 million investment in January 2025 to protect Arizona's water supply through conservation, advanced technology, and infrastructure improvements. The investment focuses on addressing critical water challenges across the state through scientific studies, advanced monitoring technology, and support for conservation projects.
Legal and Policy Implications
The new law represents a significant shift in how water management is approached in rapidly growing areas of Arizona. According to the Arizona Department of Water Resources, the legislation requires the Central Arizona Water Conservation District to replenish groundwater in the Pinal AMA within three years of incurring a replenishment obligation. Municipal providers applying for new assured water supply designations can elect whether member land parcels within their service areas retain replenishment obligations.
This approach aligns with Arizona's broader water management philosophy established under the 1980 Groundwater Management Act. As noted by the Arizona Municipal Water Users Association, the state has made significant progress in reducing groundwater reliance while maintaining a thriving economy, but post-2025 management requires updated approaches to address ongoing challenges.
Community and Industry Response
The legislation has garnered strong support from local officials and water industry leaders. Pinal County Board of Supervisors Chairman Stephen Miller praised the collaborative effort, stating that according to Hoodline, "This was a true team effort, and all parties worked collaboratively and diligently to ensure that Pinal County was included in this legislation." Miller emphasized the importance of bipartisan support, noting that "The true bipartisan support for this bill shows just how important the policy is to growth in our area."
Fred Schneider, President of Arizona Water Company, expressed gratitude for the legislative process and its outcomes. The company operates water systems across Arizona and has been actively involved in water management discussions as communities seek to balance growth with sustainability.
Long-term Implications for Arizona's Water Future
The signing of HB 2753 represents part of a broader trend toward stricter water management across Arizona's growing regions. As reported by the Arizona Mirror, recent legislative sessions have seen debates over water restrictions for developers, with communities within the Phoenix AMA—including Phoenix, Mesa, Tempe, Scottsdale, and others—supporting stronger assured water supply requirements.
According to Choices Magazine, with reductions in Colorado River deliveries, Arizona has become increasingly dependent on groundwater. The state maintains different groundwater management regimes, with metropolitan counties having irrigated acreage limitations, monitoring requirements for agricultural groundwater use, and pumping regulations.
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