An Arizona trial court has struck down the Arizona Department of Water Resources' restriction on home development, but homebuilders won't be starting construction any time soon as a result on lots that have been gathering dust over the past few years.
The Goldwater Institute sued Gov. Katie Hobbs administration in January 2025 over water restrictions on behalf of the Home Builders Association of Central Arizona.
ADWR had imposed a new rule in 2024 that requires a 100-year groundwater supply across water management areas, and not just at development sites. This new restriction is known as the "unmet demand rule," a restriction limiting construction throughout metro Phoenix, said Jon Riches, vice president for litigation and general counsel for Goldwater Institute.
A final judgment is expected to be issued in the coming weeks, and an ADWR spokesman said the department plans to appeal the ruling.
