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<br />. <br /> <br />. <br /> <br />ARIZONA VATER TRANSFERS SUKHARY <br /> <br />ARIZoNA TRANSFER POLICY <br /> <br />Arizona's 1980 Groundwater Management Act is the driving force behind <br />water farm purchases in Arizona. The act established four Active Management <br />Areas (AMAs) within which the groundwater is being managed intensively to <br />reduce groundwater withdrawals.' The management goal for the Phoenix, <br />Tucson, and Prescott AKAs is to achieve safe yield by the year 2025. Safe <br />yield for purposes of the statute means that groundwater withdrawals may not <br />exceed total recharge - - in other words, the basin must become hydrologi- <br />cally "balanced." In the Pinal AKA, where a primarily agricultural economy <br />exists, the goal is to extend the life of the economy as long as possible <br />consistent with the need to preserve future water supplies for nonagricul- <br />tural uses. <br /> <br />Within AKAs, the Act prohibits new development where a 100 year assured <br />water supply does not exist. Before most lands within an AKA may be-offered <br />for sale or lease, a certificate of assured water supply must be obtained <br />from the Director of the Arizona Department of Water Resources (ADWR). <br />Additionally, the proposed water use must be consistent with the management <br />plan and achievement of the management goal for the AKA. <br /> <br />Within those AKAs which have safe yield as their goal, an assured water <br />supply eventually may not be based on mining groundwater within AKAs. <br />Consequently, the quantity of groundwater located within AKAs that can <br />"count" toward an assured water supply is finite. Cities and towns which <br />have subcontracted to receive Central Arizona Project (CAP) water are <br />presumed to have assured water supplies until the year 2001. At this time <br />the determination is subj ect to review by the Director. The uncertainty <br />created by this provision drives many municipalities with seemingly adequate <br />CAP supplies to obtain additional water rights outside of their AKAs. The <br />transferability of various water rights is summarized in Table A. <br /> <br />GROUNDWATER TRANSFERS <br />The withdrawal, use, and transportation of groundwater is regulated by <br />the provisions of the 1980 Groundwater Management Act. The Act was moti- <br />vated, in part, by a need to resolve uncertainties created by court-made <br />rules limiting the transportability of groundwater. Provisions of the Act <br />removed some limitations on the transportation of groundwater to promote <br />development. For example, the Act eliminated injunctive relief as a remedy <br />for a neighboring landowner damaged by water transport and specified a set <br />of circumstances and conditions under which a rightholder who has suffered <br />injury may sue to recover damages. This means that a damaged party cannot <br />stop the transport, but can, under certain circumstances, be compensated for <br />any losses suffered. An action to recover damages is usually allowed when <br />groundwater is moved across a basin or sub-basin boundary, but injury is not <br />presumed merely from the fact of transportation. The legal nature of <br />groundwater varies depending on whether the water is withdrawn from within <br />or outside of an AKA. <br /> <br />,~ <br />