Key Takeaways
- Water rights are critical in Arizona real estate due to the state's arid climate
- Arizona uses the doctrine of prior appropriation for surface water rights
- Groundwater rights depend on whether the property is in an Active Management Area (AMA)
- Starting 2025, licensees must complete 1 hour of Arizona Water CE for renewal
- Environmental issues including lead paint, mold, and flood zones require disclosure when known
Last updated: January 2026
Arizona Water Rights and Environmental Issues
Water rights are particularly important in Arizona due to the state's desert climate and limited water resources.
Arizona Water Law
Prior Appropriation Doctrine
Arizona follows prior appropriation for surface water:
- "First in time, first in right"
- Senior rights have priority over junior rights
- Rights can be lost through non-use
- Rights are separate from land ownership
Surface Water vs. Groundwater
| Type | Regulation |
|---|---|
| Surface Water | State permits required, prior appropriation |
| Groundwater | Depends on location (AMA vs. non-AMA) |
Active Management Areas (AMAs)
Arizona has 5 Active Management Areas where groundwater is strictly regulated:
| AMA | Location |
|---|---|
| Phoenix AMA | Maricopa County area |
| Tucson AMA | Pima County area |
| Pinal AMA | Pinal County |
| Prescott AMA | Yavapai County |
| Santa Cruz AMA | Santa Cruz County |
Inside AMAs
| Requirement | Detail |
|---|---|
| New wells | Permit required |
| Subdivisions | Must demonstrate 100-year water supply |
| Conservation | Mandatory water-saving measures |
| Reporting | Water usage must be reported |
Outside AMAs
Less regulated but still subject to:
- General groundwater laws
- Well registration requirements
- Reasonable use doctrine
Water Issues in Real Estate
100-Year Assured Water Supply
For subdivisions in AMAs:
- Must demonstrate 100-year water supply
- ADWR (Dept. of Water Resources) certification
- Affects development approval
- Important for buyers to understand
Certificate of Assured Water Supply
Developers must obtain a Certificate of Assured Water Supply or show:
- Adequate water for proposed development
- Financial and physical availability
- Consistent with management plans
2025 CE Requirement: Arizona Water
Starting January 1, 2025:
- All licensees must complete 1 hour of Arizona Water CE
- Part of the 24-hour renewal requirement
- Covers water rights and real estate implications
Environmental Issues
Lead-Based Paint
Federal requirement for pre-1978 homes:
- Provide EPA pamphlet
- Disclose known lead hazards
- 10-day inspection opportunity (can be waived)
Mold
- No specific Arizona disclosure requirement
- Should be disclosed if known
- May affect habitability
Radon
- Natural radioactive gas
- No state disclosure requirement
- Testing recommended
Flood Zones
| Requirement | Status |
|---|---|
| Federal flood insurance | Required in flood zones for federally-backed loans |
| State disclosure | Not specifically mandated |
| Best practice | Disclose flood zone status |
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Test Your Knowledge
What is the new CE requirement for Arizona licensees starting January 2025 regarding water?
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Test Your Knowledge
What must subdivisions inside an Arizona AMA demonstrate?
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