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State Water Crisis Deepens as Colorado River Negotiations Stay Stalled

Arizona's water future faces growing uncertainty as state funding for new water supplies continues to shrink and Colorado River negotiations between seven basin states remain deadlocked, with federal intervention expected soon.

Dana Goddard

June 29, 20262 min read

Arizona water — illustration, Jake Team LLC
Arizona water — illustration, Jake Team LLC

Queen Creek, Arizona — Arizona's long-term water security faces mounting pressure as state funding for new water supplies continues to shrink and Colorado River negotiations between the seven basin states remain at an impasse, with federal intervention now looming, according to state officials and water advocates.

Queen Creek, located in the southeast Phoenix metro area and spanning the Maricopa-Pinal county line, has a population of approximately 70,000 and is one of Arizona's fastest-growing communities — making long-term water supply planning critical to the town's continued growth and the daily lives of its residents.

The Water Infrastructure Finance Authority of Arizona, which was funded with $1 billion in 2022 to develop long-term water sources, has seen about two-thirds of that money clawed back in subsequent budget sweeps. The current state budget takes another $20 million from WIFA's water supply development fund, though it does not touch the long-term water augmentation fund. A coalition of more than 30 groups — including the Central Arizona Project, the League of Arizona Cities and Towns, and the Homebuilders Association of Central Arizona — wrote to Governor Katie Hobbs in May urging protection of WIFA's remaining funds.

"We as a state need to show that we are seriously working to come up with new supplies to help offset reductions to the Colorado River. We're definitely behind. We're not as far along as we should be," said Warren Tenney, executive director of the Arizona Municipal Water Users Association.

Governor Hobbs told reporters on June 25 that upper basin states have "consistently refused to come to the table with real solutions" and warned that Arizona "will end up taking the largest shortages, no matter what happens." The state budget includes a $6 million appropriation into a litigation fund for potential legal action, though Hobbs said there is nothing to litigate yet. A decision from the U.S. Department of Interior is expected soon.

WIFA is currently studying four long-term water importation projects, including importing desalinated water and groundwater from California. Cost estimates for those projects are expected in August 2026. WIFA Chairman Jonathan Lines said the authority has "some serious work to do and we're approaching a point where it becomes more critical to have more water." Rural water managers are also sounding alarms, concerned that metropolitan areas scrambling for alternative supplies could threaten rural groundwater reserves.

"The upper basin has consistently refused to come to the table with real solutions. They refuse to conserve any water in a southern state deal. That is not acceptable to Arizona." — Governor Katie Hobbs

Source: https://azcapitoltimes.com/news/2026/06/26/water-woes-continue-as-funding-for-statewide-solutions-dwindles/

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Dana Goddard

Dana Goddard covers weather, storms, and seasonal life around Queen Creek.

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