By Matthew Holloway |
On Monday, Common Sense Institute (CSI) Arizona released a new report on Arizona’s water resources. In the report, CSI made a determination that contrasts wildly with commonly preconceived notions that a supply scarcity issue is Arizona’s largest problem. Instead, the group called out gaps in “infrastructure and ingenuity.”
In a press release, CSI advised, “If Arizona opts to address its water future by ending growth and limiting development, rather than investing in infrastructure and addressing water policies, the Grand Canyon state faces the potential of billions in lost economic activity and thousands of new jobs.“
Glenn Farley, CSI Arizona’s Director of Policy & Research explained, “In general, Arizona’s water challenges are not just about scarcity; they are about infrastructure and ingenuity. For centuries, Arizona’s dry central valley has thrived through engineering solutions that move water from areas of plenty to areas of need. Leaders today have options that could lead to very different outcomes for the future economy of our state. Our data finds that investing in innovative infrastructure and giving property owners the legal and physical flexibility they need to access the water our economy demands, will result in increased economic growth for the state of Arizona.”
In particular, the report took aim at the home-building moratorium in the Phoenix Active Management Area (AMA) imposed by Governor Katie Hobbs’ administration. According to CSI, should the moratorium be maintained for the next decade, Arizona could see a catastrophic $2 billion in lost GDP. However, the report adds, “Augmenting water supply by 300,000 acre-feet could create $4.7 billion in net state product.”
The report details that the expansion of “legal and physical infrastructure to move and trade water can help increase water availability without forced cuts or forced reallocation.”
CSI Arizona highlighted a 2018 controversial water deal between an investment firm representing the owners of farmland in Cibola, Arizona, near the Colorado River, and the town of Queen Creek that enabled Queen Creek to pay a private landowner $24 million for an annual allotment of 2,033 acre-feet of water. In other words: “the voluntary retirement of legacy agricultural farmland” through a private sale allowed a city without assured water rights through the Phoenix AMA to obtain the water needed to grow.
The report found: “Political and legal structures that acknowledge and facilitate, rather than impede, these kinds of transactions can help manage Arizona’s ongoing transition and continued growth. Furthermore, the ensuing injection of money and capital into the rural sources can be used for local economic development, creating a win-win.”
The think tank also called upon Arizona lawmakers to seek out alternative external sources of water citing the potential for desalination operations in Mexico at the Sea of Cortez, just 250 miles from Phoenix.
Citing the successes of Israel and Singapore to develop such systems, CSI noted, “While existing studies suggest the cost of desalination is high, approximately $2,000/acre-foot, costs may decline as the technology matures. Additionally, consumers may be more willing to pay if existing scarcity issues are not resolved.” Indeed, Israel currently relies upon desalination from the Mediterranean and Red Seas for over half of its fresh water supply.
According to a USA Today story from 2021, officials from Arizona, Nevada, California and Mexico have been exploring collaboration on such a project in exchange for trading some of the drinking water produced for a portion of Mexico’s allocation of the Colorado River.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
