Arizona Revised Statutes

Ariz. Rev. Stat. § 45-492 (2026)

Withdrawals by cities, towns and private water companies within service areas; contract to supply groundwater

✓ current as of May 2026
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A. Except as provided in subsection D of this section, in an active management area, a city, town or private water company shall have the right to withdraw and transport groundwater within its service area for the benefit of landowners and residents within its service area, and the landowners and residents are entitled to use the groundwater delivered, subject to:

1. Articles 8 and 8.1 of this chapter relating to transportation of groundwater.

2. Conservation requirements developed by the director pursuant to article 9 of this chapter.

3. Section 45-493, subsection D.

B. Claims of landowners to irrigation grandfathered rights or type 1 or 2 non-irrigation grandfathered rights shall be subject to article 5 of this chapter.

C. A city, town or private water company may contract to supply groundwater to a city, town or private water company in the same active management area if it is consistent with the management plan for the active management area and section 45-576 and is approved by the director.

D. In an active management area, a city, town or private water company whose service area has qualified as a member service area under title 48, chapter 22, or as a water district member service area under title 48, chapter 28, has the right to withdraw and transport groundwater within its service area for the benefit of landowners and residents within its service area, and the landowners and residents are entitled to use the groundwater delivered, subject to subsection A of this section and, to the extent the groundwater delivered is considered excess groundwater as defined and used in title 48, chapter 22 or 28, as applicable, subject to the payment by the city, town or private water company of the replenishment tax levied from time to time by a conservation district under title 48, chapter 22, or a water district under title 48, chapter 28, whichever is applicable.  A city, town or private water company shall be deemed to have failed to pay the replenishment tax only if the conservation district or the water district provides notice to the department of a delinquency in the payment of the replenishment tax pursuant to section 48-3781, subsection G or section 48-4982, subsection G, as applicable.

 

Notes of Decisions
Cited in 10 cases, 1985–2013 · leading case: Arizona Water Co. v. Arizona Dep't of Water Resources, 73 P.3d 1267 (Ariz. Ct. App. 2003).
Arizona Water Co. v. Arizona Dep't of Water Resources, 73 P.3d 1267 (Ariz. Ct. App. 2003). · cites it 6× “That such management and regulation must include conservation measures is indicated not only by the specific mention of conservation in the policy declaration but also by the language of A.R.S. § 45-492(A), one of the principal statutes implementing the policy.”
Arizona Water Co. v. Arizona Dep't of Water Resources, 91 P.3d 990 (Ariz. 2004). · cites it 2× “¶ 23 The first provision of the Code cited by the majority below, A.R.S. § 45-492(A)(2), simply provides that “a city, town or private water company shall have the right to withdraw and transport groundwater,” and the “landowners and residents” may use groundwater delivered to…”
TDB Tucson Grp., L.L.C. v. City of Tucson, 263 P.3d 669 (Ariz. Ct. App. 2011). · cites it 2× “Relying on A.R.S. § 45-492(A) of the Groundwater Management Act (the “GMA”), TDB asserted that “the residents and landowners in a municipality’s service area are entitled to water service where such service has been established.”
City of Prescott v. Town of Chino Valley, 790 P.2d 263 (Ariz. Ct. App. 1989). · cites it 2× “More specifically, Prescott contends that those provisions of the Groundwater Management Act that expressly authorize its withdrawal and transportation activities, A.R.S. § 45-492(A), fully occupy the field and leave no room for a tax such as Chino Valley’s.”
Cooke v. Town of Colorado City, 934 F. Supp. 2d 1097 (D. Ariz. 2013). · cites it 3× “As a result thereof, the Court should issue a Writ of Mandamus ordering that the Cookes receive culinary water under the same terms and conditions as all other residents of the city and they should be granted damages for their expenses, loss of water, pain and suffering,…”
Cortaro Water Users' Ass'n v. Steiner, 714 P.2d 836 (Ariz. Ct. App. 1985). · cites it 14× “” A.R.S. § 45-492. 2 “Service area” is defined in A.”
Arizona Water Co. v. Arizona Dep't of Water Resources, 770 P.2d 370 (Ariz. Ct. App. 1988). · cites it 2× “As a result, all the wells are located within Arizona Water’s service area, and the company may withdraw groundwater from them pursuant to A.R.S. § 45-492. The rights to withdraw water pursuant to that section are referred to as service area water rights and are not involved in…”
Cortaro Water Users'ass'n v. Steiner, 714 P.2d 836 (Ariz. Ct. App. 1985). · cites it 14× “" A.R.S. § 45-492. [2] "Service area" is defined in A.”
Az Water Co v. Az Dept of Water Resources (Ariz. 2004). · cites it 2× “¶23 The first provision of the Code cited by the majority below, A.R.S. § 45-492(A)(2), simply provides that “a city, town or private water company shall have the right to withdraw and transport groundwater,” and the “landowners and residents” may use groundwater delivered to…”
Tdb Tucson Grp., L.L.C. v. City of Tucson (Ariz. Ct. App. 2011). · cites it 2× “Relying on A.R.S. § 45-492(A) of the Groundwater Management Act (the “GMA”), TDB asserted that “the residents and landowners in a municipality‟s service area are entitled to water service where such service has been established.”
— Ariz. Rev. Stat. § 45-492(A) — 4 cases
Arizona Water Co. v. Arizona Dep't of Water Resources, 73 P.3d 1267 (Ariz. Ct. App. 2003). “That such management and regulation must include conservation measures is indicated not only by the specific mention of conservation in the policy declaration but also by the language of A.R.S. § 45-492(A), one of the principal statutes implementing the policy.”
TDB Tucson Grp., L.L.C. v. City of Tucson, 263 P.3d 669 (Ariz. Ct. App. 2011). “Relying on A.R.S. § 45-492(A) of the Groundwater Management Act (the “GMA”), TDB asserted that “the residents and landowners in a municipality’s service area are entitled to water service where such service has been established.”
City of Prescott v. Town of Chino Valley, 790 P.2d 263 (Ariz. Ct. App. 1989). “More specifically, Prescott contends that those provisions of the Groundwater Management Act that expressly authorize its withdrawal and transportation activities, A.R.S. § 45-492(A), fully occupy the field and leave no room for a tax such as Chino Valley’s.”
Tdb Tucson Grp., L.L.C. v. City of Tucson (Ariz. Ct. App. 2011). “Relying on A.R.S. § 45-492(A) of the Groundwater Management Act (the “GMA”), TDB asserted that “the residents and landowners in a municipality‟s service area are entitled to water service where such service has been established.”
— Ariz. Rev. Stat. § 45-492(A)(2) — 2 cases
Arizona Water Co. v. Arizona Dep't of Water Resources, 91 P.3d 990 (Ariz. 2004). “¶ 23 The first provision of the Code cited by the majority below, A.R.S. § 45-492(A)(2), simply provides that “a city, town or private water company shall have the right to withdraw and transport groundwater,” and the “landowners and residents” may use groundwater delivered to…”
Az Water Co v. Az Dept of Water Resources (Ariz. 2004). “¶23 The first provision of the Code cited by the majority below, A.R.S. § 45-492(A)(2), simply provides that “a city, town or private water company shall have the right to withdraw and transport groundwater,” and the “landowners and residents” may use groundwater delivered to…”
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