Ag-to-Urban: Clearing Misconceptions About Arizona’s New Water Bill

Arizona recently passed the “Ag-to-Urban” bill (SB 1611), a bipartisan effort that’s getting a lot of attention—and some criticism. As the new government relations intern, it's apparent that this bill has been front lining news and needs some explaining. What does this bill really mean? Why is it important to farmers? And how is it going to address both water conservation and Arizona’s housing shortage? At first glance, it seems controversial. Some stances warn that it allows developers to take over farmland to utilize groundwater, harming long-term security. But as we examine the bill, it's designed to be a win-win-win for farmers, developers, and our aquifer.

An aerial shot of farmland next to suburban development.

What the Ag-to-Urban Bill does

“An acre of farmland uses up to seven times more water than a home.” – Gov. Katie Hobbs

The ag-to-urban program allows farmers to voluntarily sell farmland and their irrigation water rights to developers. This helps create housing in areas like Queen Creek, Buckeye, and Pinal County—areas previously restricted under the 100-year assured water supply rule. Developers must work with water providers to ensure projects remain within allocated water limits, and all water used must be replaced in the aquifer by alternative sources. Gov. Katie Hobbs called it a “win across the board”, noting the law benefits farmers who want to retire unused land, developers who need housing sites, and the aquifer itself.

Misconceptions About the Bill

"It Will Drain Our Groundwater"

Some critics argue the bill encourages overuse of groundwater, replacing crops with permanent homes. Furthermore they have cautioned that new housing could stress the aquifer, depleting the water supply for all.

The Truth: Only farmland with recent irrigation history qualifies, and homes use far less water than crops, creating a net positive in water conservation in the short term.

"It's Just Developers' Bill"

While developers benefit, the bill also supports farmers who may otherwise struggle to maintain irrigation-intensive crops on land that’s increasingly surrounded by urban growth.

“It only takes about 15 years of farming to offset 100 years of housing. It protects the aquifer and gets housing going" - Paul Gardner, Water Resources Director for Queen Creek"

How Farmers Will Benefit

The bill gives farmers a financial path forward. Selling water rights and unused farmland allows them to retire or reinvest in more sustainable operations.

Farmers in urbanizing areas face rising land values and pressures from development. The ag-to-urban program lets them capitalize on these trends without abandoning water stewardship.

How the Bill Helps Communities

Arizona’s housing shortage has been severe, partly due to the 100-year water supply rule that halted development in many suburbs. By opening a controlled, water-conscious pathway, the bill allows communities to grow while conserving precious groundwater.

Note: Turf, lakes, and other water-intensive amenities are restricted, ensuring water savings from converting farmland to urban use are realized.

Balancing Concerns and Realities

Even with the compromises, the bill isn’t perfect. Some lawmakers, environmentalists, and water policy experts remain concerned about long-term aquifer health and reliance on finite Colorado River water. However, amendments to the bill, including reduced obligations for the Central Arizona Groundwater Replenishment District (CAGRD), make the program more feasible and less risky.

The Bottom Line

The ag-to-urban bill is about turning misconception into opportunity. It’s not a giveaway to developers or a threat to water security. Instead, it:

• Helps farmers transition unused land responsibly

• Opens pathways for much-needed housing

• Conserves water by reducing agricultural irrigation

For Maricopa County agriculture, this legislation is a reminder that policy and practicality can work together. It shows that smart legislation can protect water resources while supporting economic growth. And while long-term water solutions are still needed, the ag-to-urban program offers a responsible, immediate approach to a complex problem.

References

Arizona Commerce Authority. Demographics & Economic Growth Data. Arizona Commerce Authority, https://www.azcommerce.com/. Accessed 21 Jan. 2026.

Arizona Department of Water Resources. Irrigation Non-Expansion Areas (INAs) and Water Management. Arizona Dept. of Water Resources, https://water.az.gov/. Accessed 21 Jan. 2026.

Arizona Farm Bureau Federation. Policy & Legislative Updates. Arizona Farm Bureau Federation, https://www.azfb.org/. Accessed 21 Jan. 2026.

Arizona Legislature. Bill Tracker: Agriculture and Water Policy Legislation, 2024–2025 Session. Arizona State Legislature, https://www.azleg.gov/. Accessed 21 Jan. 2026.

United States Department of Agriculture, National Agricultural Statistics Service. 2022 Census of Agriculture: Maricopa County Profile. USDA, https://www.nass.usda.gov/. Accessed 21 Jan. 2026.

University of Arizona Cooperative Extension. Urban & Agricultural Water Use Research. University of Arizona, https://extension.arizona.edu/. Accessed 21 Jan. 2026

.