By Matthew Holloway |

The Goldwater Institute recently sent an email that its lawsuit announced in January against the Hobbs administration is moving forward.

In the email, Goldwater highlighted the potential impact of the Arizona Department of Water Resources (ADWR) controversial new rule imposing the requirement of a 100-year groundwater supply across wide swaths of the state.

Goldwater’s Vice President for Litigation Jon Riches wrote, “This government overreach sets a troubling precedent for other bureaucratic agencies to bypass the authority of the legislature. Due to ADWR disregarding the legislative process and the risks posed by the water rule, the Goldwater Institute is suing Governor Hobbs’ administration.”

Goldwater is challenging the Arizona Department of Water Resources’ (ADWR) controversial new rule imposing the requirement of a 100-year groundwater supply across wide swaths of the state. The troubling regulation was detailed earlier this year in an op-ed from Goldwater’s Vice President for Litigation Jon Riches and in a report by AZ Free News.

Riches explained that Hobbs’ appointed Director of ADWR, Tom Buschatzke, is “working outside Arizona law,” by implementing the new “unmet demand” rule, unilaterally without legislative approval or following the statutory rule-making process.

He wrote, “Despite Buschatzke’s apparent desire to act as a mini czar with unilateral power to determine this state’s water policy, his authority — like all government power — is constrained by Arizona law. And that law is crystal clear: When regulatory agencies like ADWR attempt to impose sweeping policies — such as halting all new home construction across large parts of the Valley — they must do so through formal rulemaking, allowing for public input. Instead, Buschatzke sidestepped this requirement and imposed his homebuilding moratorium with the stroke of a pen. The Goldwater Institute, where I work, is now suing the agency to halt the illegal rule.”

In the email, Riches warned, “If someone wanted to build a house, they would be blocked from doing so if another part of the designated region, miles and miles away, did not meet the criteria of this water rule.”

The email also outlined three direct impacts that Arizona taxpayers could expect to feel: “Increased housing costs, prevention of homebuilding, [and] a dangerous precedent for government overreach.”

Riches added, “This is one of the most critical lawsuits by the Goldwater Institute in our history. We have been successful in challenging unconstitutional laws in the past, and we are ready to fight this one.”

The complaint in Home Builders Association of Central Arizona v. Arizona Department of Water Resources can be found online here. The case is currently in the Maricopa County Superior Court pending a response from the ADWR.

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.