By Matthew Holloway |
Attorneys with the Goldwater Institute are scheduled to appear in Maricopa County Superior Court at 10 a.m. Friday for a hearing in their lawsuit challenging water policy changes implemented by the administration of Katie Hobbs.
The case, filed in January 2025 on behalf of the Home Builders Association of Central Arizona, contests new requirements adopted by the Arizona Department of Water Resources (ADWR) affecting groundwater supply determinations in parts of Maricopa County.
The Goldwater Institute said the policy changes have halted approvals for new housing developments in certain areas of the Phoenix metropolitan region, including portions of Queen Creek and Buckeye.
Under Arizona law, homebuilders in designated Active Management Areas must obtain a certificate demonstrating a 100-year assured water supply before beginning construction.
Goldwater’s lawsuit challenges a policy change announced by ADWR in November 2024. It contends that the department adopted a new framework based on what it describes as “unmet demand,” which it says is not referenced in Arizona statute.
Goldwater penned a letter to the ADWR one month later, urging the agency to reconsider its “AMA Wide Unmet Demand Rule,” asserting that the new rule was in violation of the law, having been imposed without legislative approval or via the required rulemaking process.
ADWR has defended its authority to interpret and apply groundwater modeling within the state’s assured water supply program. The department has not publicly characterized the policy as a formal rulemaking.
The Maricopa County Superior Court previously denied ADWR’s motion to dismiss the case, allowing the lawsuit to proceed.
During Friday’s hearing, attorneys for Goldwater are expected to ask Judge Scott Blaney to enter judgment in favor of the Home Builders Association of Central Arizona.
The case is being heard at the Maricopa County Superior Court, East Building, located at 101 W. Jefferson Street in Phoenix.
In a statement, Goldwater Institute Vice President for Litigation Jon Riches said: “Decisions on vital statewide concerns like the availability of affordable housing and the responsible stewardship of our natural resources should be made through a transparent, democratic process—not imposed by executive fiat.”
Additional information about the case is available on the Goldwater Institute’s website. No ruling is expected at the time of the hearing.
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.
