(The Center Square) – The Arizona Water Co. received a Designation of Assured Water Supply (DAWS) from the state, which will help increase housing supply in Pinal County by more than 80,000 units.
Gov. Katie Hobbs called the designation “a critical step to building homes, growing our economy, and protecting our water for generations.”
“Pinal County has waited a decade for water solutions like this one, and today we are proving that Arizona has what it takes to conquer our water challenges and deliver real results for our communities,” she said. “Congratulations to Arizona Water Co. and all the stakeholders who have worked for years to make this a reality.”
The county is just southeast of Phoenix.
Fred Schneider, AWC’s president, said the designation “gives our communities the certainty they need to grow with confidence.”
“By working closely with Gov. Hobbs and local leaders, we’ve built a path that secures renewable water supplies while safeguarding ratepayers and supporting economic opportunity across Pinal County,” Schneider said.
Collin Wogenstahl, manager of the Arizona Department of Water Resources’ assured and adequate water supply program, told The Center Square that DAWS is issued to municipal providers such as Phoenix and Tempe.
According to Wogenstahl, DAWS also apply to private water providers such as AWC and Eprcor Water.
For these entities to obtain a DAWS, they have to prove that water can be “physically, continuously and legally available for a hundred years,” Wogenstahl said. On top of this, they need to prove the water is of “sufficient quality” and they have the financial capability to provide the service, the manager added.
These entities also need to demonstrate they can “meet consistency with the active management area,” meaning they can replenish and conserve groundwater, he noted.
Applicants for DAWS must “account for growth that’s going to take place within” the area they are trying to provide water service for, Wogenstahl said.
Besides DAWS, Arizona issues a certificate of assured water supply, the manager explained.
These only apply in active management areas in Arizona, which have a “heavy reliance on mined groundwater,” the Arizona Department of Water Resources says.
Arizona states this program “is designed to sustain” Arizona’s “economic health by preserving groundwater resources and promoting long-term water supply planning.”
CAWS covers master-planned subdivisions that are outside a designated water provider, Wogenstahl noted.
The manager explained CAWS are good for 100 years while DAWS need to be changed every 10 to 15 years to “account for population growth.”
Before the company’s designation, home builders would need to get a CAWS and AWC would provide the water for them, Wogenstahl said.
However, with AWC receiving a designation, developers no longer need a certificate when trying to build within AWC’s designated area, the manager said.
This designation has unlocked all of this potential housing in Pinal County, Wogenstahl noted.
He said Pinal County has a new alternative water supply that offsets groundwater use, meaning the county will be growing on “non-groundwater supplies.”
AWC will use water from the Colorado River and treated wastewater, the manager added.
Terri Sue Rossi, vice-president of water resources at AWC, told The Center Square via email that population growth “will be responsible for bringing new non-groundwater supplies to meet those future demands.”
“As time goes on, AWC will be seeking non-groundwater supplies to reduce existing groundwater pumping. Those new supplies will require investment that could increase water rates modestly,” Rossi explained.
Pinal County Supervisor Stephen Miller told The Center Square that it was “good news” that AWC obtained a DAWS. Miller added that “it’s been a long time coming.”
Miller said this designation will help open up more opportunities for developers in Pinal County to “move forward with their projects.”
Rossi said the company’s designation “covers the cities of Casa Grande and Coolidge and the surrounding Pinal County areas.”
Miller described this as a “very big area.”
Even with over 80,000 projected homes going to be built in Pinal County, Miller said he did not think it would lower home prices in the county.
Miller, who has been a homebuilder for 40 years, said two things drive home costs: lot prices and the other costs associated with building a subdivision, such as streets and curbs.
“All the requirements to build a subdivision today are very expensive,” he explained.
Rossi also told The Center Square by phone that AWC expects new developers interested in building projects, such as subdivisions, to reach out to the company in the second half of 2026 and into 2027.
Rossi noted the level of interest in building in the new designated area depends on the economy and interest rates.
