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'Ag-to-urban' law applications for Arizona farmers now open

Water at a West Valley agricultural operation in March 2025.
Chelsey Heath/KJZZ
Water at a West Valley agricultural operation in March 2025.

The Arizona Department of Water Resources started accepting applications Friday from farmers who operate in areas where groundwater is protected.

The program is called ag-to-urban. It lets farmers sell their land and groundwater rights to housing developers.

The idea of ag-to-urban is to increase the state housing supply and conserve groundwater, because housing uses far less water than agriculture per acre. The legislation passed with bipartisan support last session and goes into effect now.

Democratic Gov. Katie Hobbs touted the bill as “the most consequential piece of groundwater conservation legislation since the 1980 Groundwater Management Act.”

Hobbs’ office also projected that ag-to-urban “is projected to conserve nearly 10 million acre-feet over its lifetime and facilitate the development of tens of thousands of new homes.”

But ag-to-urban is a voluntary program, so its effectiveness depends on how many farmers choose to participate.

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Camryn Sanchez is a senior field correspondent at KJZZ covering everything to do with Arizona politics.