'Ag-to-urban': Gov. Katie Hobbs signs water bill

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AZ Gov. Katie Hobbs signs 'ag to urban' bill

Under the bill that Gov. Katie Hobbs signed into law, farmers are allowed to sell farmland and groundwater rights to housing developers. This comes at a time when the state is experiencing a housing shortage. FOX 10's Kenzie Beach has more.

Arizona Governor Katie Hobbs has signed SB 1611, also known as the "ag-to-urban" bill.

What we know:

The new law allows farmers to sell farm land and groundwater rights to housing developers, and it comes at a time when there is a housing shortage.

The biggest piece of water legislation since the Groundwater Management Act of 1980 required developers in ‘active-management areas’ to show the water supply lasted at least 100 years in order to build. In some areas, like Queen Creek, that was not possible.

Now, SB 1611 has provided an alternative path.

"It only take about 15 years of farming to offset 100 years of housing, and I think that's a thing that people miss," said Paul Gardner, Water Resources Director for the Town of Queen Creek. "It protects the aquifer, but it gets housing going." 

What Gov. Hobbs Said:

Gov. Hobbs called this a win across the board, as the bill benefits both farmers and developers. She called the bill one of the most monumental in Arizona history.

"We have to take action now to protect our water supply well into the future and to continue the economic trajectory that we're on," said Gov. Hobbs.

By the numbers:

An acre of farm land uses up to seven times more water than housing, so turning farm land into residential actually saves water.

The Valley has seen more jobs and more growth, but with less water. In 2023, Gov. Hobbs limited development in growing Arizona cities for that very reason.

"Growing these jobs takes a lot of housing, and this legislation addresses both of those things," Gov. Hobbs said. "It protects our groundwater, and allows us to continue to grow and build the housing that we need."

Local perspective:

Nancy Caywood, who is a fifth-generation farmer, supports the bill. However, she wants regulation in place to keep farmland in the Phoenix area.

"Agriculture is freedom, we need to keep it on our own soil," said Caywood, who owns Caywood Farms.

"We're not trying to stop agriculture," Gov. Hobbs said. "This is largely unused agricultural land, and it's completely voluntary."

What's next:

Gov. Hobbs anticipates areas from Buckeye to Queen Creek to be booming with development.

Arizona PoliticsKatie HobbsHousingNews