Arizona Gov. Katie Hobbs’ administration says it has sent a cease and desist letter to a developer trying to get around water regulations in the unincorporated community of Rio Verde Foothills.
To build a house in most urban parts of Arizona, developers first need a certification from the state saying there is enough water to last that property 100 years. But some larger lots, known as “wildcat subdivisions,” are not subject to the rule.
In a press release Tuesday, the Hobbs administration said the state Attorney General’s Office and the Arizona Department of Real Estate recently investigated a developer they say was trying to use that loophole to skirt the 100-year assured water supply rule in Rio Verde Foothills.
“By recording the Cease & Desist, ADRE will prevent the final sale of homes until a reliable, 100-year water supply has been identified and proven as a part of the project’s public report,” the press release said.
Hundreds of homes in Rio Verde Foothills were cut off from their water supply in 2023 due to drought restrictions in neighboring Scottsdale. The state Legislature had to step in to negotiate a temporary fix for the community.
“Rio Verde Foothills has suffered enough as a result of bad apple developers skirting the law and building without first securing a water supply,” Hobbs said in the statement.
Hobbs said she still wants the legislature to take action to close the wildcat subdivision loophole.
