Reliable water. Local control. A stronger future for Queen Creek.

The Town of Queen Creek has been making strategic investments in water supplies for nearly a decade, working towards water self-sufficiency. The Town has minimal reliance on the Colorado River (approximately 10%) and in 2025 made a historic investment in a drought-proof supply that will significantly reduce local groundwater pumping (approximately 6%).

Due to these strategic investments and planning, Queen Creek owns a safe and reliable water supply not subject to cuts. The Town is implementing a dedicated water resource fee to pay for these investments, the associated infrastructure and replace the CAGRD (Central Arizona Groundwater Replenishment District) fees 89% of customers are assessed.

At the Sept. 2 meeting, staff presented a recommended water resource fee of $3.07 per 1,000 gallons of water, based on the metered usage. The proposal also includes a credit based on the water the Town receives back through the wastewater system. The Town uses all treated wastewater (effluent) to offset groundwater pumping and extend drought-proof supplies. The proposed credits are based on the average volume received through the Town’s wastewater system:

○ Residential / Schools 40%
○ Commercial / Multifamily with landscaping 80%
○ Commercial / Multifamily with no landscaping 90%

Based on staff’s recommendation, in the first year, the residential customer impact per month (based on 10,000 gallons) would be $30.70, and $18.42 for customers with the wastewater credit. The proposal includes incremental annual increases.

The water resource fee will replace the CAGRD assessment on customer property tax bills, including the amount the Town has been offsetting on behalf of customers since 2018.

The Water Resource Fee WIll Replace:
CAGRD fees (89% of Queen Creek customers are assessed a CAGRD fee on their annual property tax bill). The Town has been paying CAGRD, on behalf of Queen Creek water customers, at the highest allowable rate for customers since 2018, saving customers $71 million.

The Water Resource Fee Will Fund:
● Long-term water supplies that are drought proof and reduce local groundwater pumping
● Related infrastructure
● Remaining replenishment
● Water resource programs

At the Sept. 16 meeting, the Town Council will consider a Notice of Intent (NOI) to implement the water resource fee. If the NOI is approved, a public hearing will be held on Nov. 18, 2026 at the Council meeting, with the earliest effective date to implement the water resource fee in January 2027.

Building Queen Creek’s Water Future

Queen Creek has ample groundwater, replenishing it is expensive. The 1980 Arizona Groundwater Management Act requires every gallon of water pumped to be replenished.

Nearly all of Queen Creek water customers are enrolled in CAGRD to handle groundwater replenishment. Enrolled customers pay an annual membership fee on their property tax bill, and a fee based on water consumed the previous year.

In 2018, the Queen Creek Town Council began applying groundwater credits at the maximum allowable amount to reduce CAGRD assessments for customers. This was an interim measure until the Town established a long-term solution.

In 2025, the Town made a historic investment in its water future, securing 1.7 million acre-feet of water from Harquahala Valley, a state-designated water storage and transportation basin. The Town was the first entity to purchase this water for transport, getting it at the lowest rate. Harquahala provides a 100-year water supply and is drought-proof. The water will be transported via the existing CAP canal that runs north of Harquahala Valley and travels past the eastern border of Queen Creek.

With Harquahala water in the Town’s portfolio, local groundwater dependence drops to 6%; and the reliance on the Colorado River remains low (10%). Uncertainty related to the Colorado River will only further increase the price of water, which has continued to rise.

The Town’s water resource goals include:
● Own a water portfolio with 100-year assets that are less susceptible to drought conditions
● Continue to move customers away from CAGRD
● Establish more stable & sustainable costs for customers
● Continue efforts to become a designated water provider
● Reduce local groundwater pumping for customers

Next Steps

A public meeting will be held on Tuesday, Sept. 8 at 6 p.m. Can’t make the meeting? Staff will have open houses each week (Municipal Services Building, 22358 S. Ellsworth Road, San Tan Conference Room):

● Sept. 14, 3 – 5 p.m.
● Sept. 22, 9 – 11 a.m.
● Oct. 1, 11 a.m. – 1 p.m.
● Oct. 7, 11:30 a.m. – 1:30 p.m.
● Oct. 12, 9 – 11 a.m.
● Oct. 20, noon – 2 p.m.
● Oct. 28, 4 – 6 p.m.
● Nov. 5, 10 a.m. – noon
● Nov. 9, 3 – 5 p.m.
● Nov. 17, 4 – 6 p.m.

A Notice of Intent to establish a new fee and set a public hearing will be considered on Wednesday, Sept. 16 at 6:30 p.m.

If the NOI is approved, the public hearing with possible action will be held on Wednesday, Nov. 18 at 6:30 p.m., with the earliest effective date in January 2027

Other Rates & Fees

At the Sept. 16 meeting, the Council will also consider a Notice of Intent to add and increase capacity fees related to water for development (one-time fees paid by new development, these do not impact existing customers).

The Council will also consider a Notice of Intent to adjust delivery rates to align with the cost of service, generally with a minimal or no impact to customers, depending on the category:

The Council will also consider a Notice of Intent to adjust delivery rates to align with the cost of service, generally with a minimal or no impact to customers, depending on the category:

• Water Rate Structure –
  • Single-Family tier adjustment (tiers 1 and 2 decrease, tier 3 increases)
  • Multifamily – going to uniform rate of $1.50*
  • Non-residential – going to uniform rate of $2.50*
  • Landscape – going to uniform rate of $4*
  • Hydrant – going to uniform rate of $9*
• Adjust select Wastewater Structure – impacts non-residential and multifamily
  •  Scale fixed rate based on meter size
• Increase Solid Waste – impacts all curbside customers ($3.78 per month increase); other solid waste fees to be adjusted at similar percentage increases.

* Per 1,000 gallons + base rate

Visit the Town’s water strategy webpage to learn more.