Pinal County Development Stalled by Water Certificate Delays

The residential development landscape in Pinal County, Arizona, remains hindered by ongoing delays related to the assured water supply certificate requirement. This situation has persisted for nearly a decade, even as neighboring areas have successfully navigated similar restrictions within months. Since 2013, the Arizona Department of Water Resources (ADWR) has classified pending water certificate applications in Pinal County as “incomplete,” without clarifying the deficiencies. In contrast, West Phoenix, which faced the same challenges, managed to resume residential development in less than a year. This disparity raises concerns about whether the halt in Pinal County reflects genuine water scarcity or inconsistent regulatory enforcement.

Impact of Incomplete Designations on Development

Stephen Miller, District 3 Supervisor for Pinal County, describes the state’s approach as a de facto moratorium on development. The ADWR has not imposed a formal ban on new residential projects, but by labeling all applications as incomplete, it has effectively stymied development efforts. “They deemed all the applications that had been submitted incomplete. But trying to understand what was not complete about my application was the difficult challenge,” Miller explains.

Developers have found themselves unable to advance projects or appeal the lack of formal decisions. The absence of detailed feedback from the state has left applicants in a state of limbo, unable to address issues or resubmit their proposals. For landowners with existing residential zoning, the situation has resulted in years of carrying costs without a viable path to revenue or project progression.

Research commissioned by Pinal County on aquifer depletion suggests that the situation may not be as severe as the ADWR has indicated. Miller argues that the restrictions are influenced by factors beyond hydrology, stating, “We spent a lot of money proving that wrong.”

Why West Phoenix Recovered Faster

West Phoenix was subjected to similar water certificate restrictions roughly three and a half years ago but was able to clear the path for new development within a year. “Within a year, West Phoenix has already resolved their issues and can move forward,” Miller states. In contrast, Pinal County remains stuck nearly a decade later with no resolution in sight.

This contrast suggests that regulators may consider factors beyond water availability, such as political influence and geographic proximity to the Phoenix metropolitan area. Pinal County, while experiencing rapid growth, lacks the political leverage of areas closer to the urban core. Miller acknowledges the political dimensions at play: “There’s always in all of this stuff a political component at some level.”

For developers, West Phoenix offers a mix of hope and frustration. Its swift recovery highlights that the state can act decisively when it chooses, revealing the arbitrary nature of Pinal County’s current situation. Local builders continue to await a policy shift that Miller contends relies more on political priorities than on hydrological evidence.

Shift Towards Rental Housing Development

The extended freeze on water certificates has compelled developers in Pinal County to alter their strategies. Typically, moving a residential project from concept to groundbreaking already takes several years due to various requirements. The certificate issue has introduced an indefinite delay to this timeline.

Developers who secured water certificates before 2013 have continued building, resulting in a divided market. “There were close to 20,000 lots with certificates,” Miller notes, referring to inventory in Casa Grande. “Two thousand homes a year is a lot.” Once this inventory is exhausted, new subdivision construction is likely to cease unless state policy changes.

Faced with these challenges, developers have pivoted towards rental housing options, which do not require a water certificate. This workaround has allowed some accommodation of population growth but has altered the housing mix and limited choices for prospective homebuyers.

Potential Solutions: Wastewater Recharge and Legislative Changes

Miller advocates for expanded wastewater processing and aquifer recharge as potential solutions to water supply challenges and development restrictions. “The supply of water and the processing of wastewater are sometimes the controlling factors to be able to move forward with a project,” he states. While wastewater recharge is an effective method for replenishing aquifers, Arizona’s regulations currently restrict most counties from managing sanitation districts, with only Pima County holding that authority.

The population threshold for establishing a sanitation district is too high for Pinal County, according to Miller. He argues for lowering this threshold, asserting that greater local control over wastewater infrastructure would empower developers to proceed with projects without state interference. He views wastewater reuse as a significant opportunity for Arizona’s future: “We do know that we can take wastewater and recharge it back into the aquifer. It’s a plus. It’s a positive. And we should be leading the nation in that.”

Recent state legislation allows agricultural water rights to be converted for urban development, although Miller notes that the impact will be gradual. The law necessitated that the Arizona Water Company achieve a specific designation before conversions could begin in Pinal County. “I understand Arizona Water has achieved that status now. So there’ll be some water activity of some type going on here,” Miller says.

Nevertheless, this conversion pathway is not a universal solution. Each developer must independently secure a water source, complicating the process and potentially increasing costs. “Everybody’s scenario is slightly different,” he adds. While the new law may facilitate some projects, it does not restore the streamlined certificate process that existed prior to 2013.

Ongoing Uncertainty for Pinal County

For Pinal County, recent legislative changes signify incremental progress rather than a comprehensive resolution to the water certificate dilemma. Developers continue to face higher costs and extended timelines compared to those in regions where water certificates remain accessible. Without a substantial shift in state policy or new local authority over water infrastructure, Pinal County is likely to continue lagging behind neighboring areas.

The ongoing freeze exemplifies the challenges posed by regulatory uncertainty and underscores the need for clearer, more consistent state policies regarding water certificates. Until these underlying approval processes are addressed, residential development in Pinal County is expected to fall short of its potential, posing broader implications for housing supply, affordability, and regional growth.