Arizona's 1st 'ag-to-urban' water credits approval goes to Buckeye housing development

A new state program awarded its first water credits on Tuesday to support the development of 825 homes in Buckeye.

State lawmakers created the “ag-to-urban” program earlier this year, which allows agricultural users to sell their land and water rights to housing developers in areas where groundwater use is restricted, like the West Valley.

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Sen. T.J. Shope (R-Coolidge) sponsored the original legislation, and said it’s a win-win for farmers and developers.

“We killed two birds with one stone,” Shope said. “We know that we have willing sellers in many cases and those willing sellers currently are members of the ag community, which we know is high water use.”

A spokesperson for the state Department of Water Resources said there are several other ag-to-urban applications in the pipeline.

The approved water project is from Forestar Group Inc., and is expected to save 437 million gallons of water a year, because residential areas use less water than agriculture.

“The ag-to-urban program is a critical tool that will support sustainable growth, help meet our region’s housing needs, and strengthen the city’s long-term water portfolio,” Buckeye Mayor Eric Orsborn said in a statement.

Arizona Department of Water Resources advisor Ben Bryce said the department is glad developers are already participating in the program, which went into effect in September.

“It’s a voluntary program that allows for willing sellers to partner with willing buyers to save water and to allow for new development, so we think it’s a real win,” Bryce said.