Queen Creek is planning for a more reliable and locally controlled water future
Post Date:11/20/2025 10:30 am
At the Nov. 19 meeting, the Queen Creek Town Council approved investing in a water supply that will allow the Town to become water self-sufficient. The Council approved funding a second purchase from Harquahala Valley, transitioning away from local groundwater pumping and replenishment obligations through Central Arizona Groundwater Replenishment District (CAGRD).
At the meeting, Vice Mayor Leah Martineau shared “this is a really big decision for this Council, our community and our future. Being fiscally conservative is something our Town is known for, and something that is philosophically important to me. Approving the WIFA loan and Certificates of Participation for an amount not to exceed $250 million sounds like a lot of money – and it is. And when I think about what that investment means for our customers and future generations who will rely on Queen Creek water, it truly is a legacy decision that helps us have water self-sufficiency.”
Investing in this water supply will secure a more reliable and locally controlled water future by:
- Reducing local groundwater pumping for current customers
- Moving customers away from reliance on the CAGRD
- Owning a water portfolio with 100-year assets that are less susceptible to drought conditions – this investment makes 90% of the Town’s water not subject to shortages
- Ensuring more stable & sustainable costs for customers
- And becoming a designated water provider earlier than projected
Queen Creek has ample groundwater – replenishing it is expensive. Groundwater removed from the aquifer must be replenished in accordance with the 1980 Arizona Groundwater Management Act. To comply with this mandate, most of Queen Creek’s water customers are members of and pay fees to the Central Arizona Groundwater Replenishment District (CAGRD), which is included in their property tax bill (properties developed prior to 1996 are exempt).
Queen Creek water customers who are CAGRD members may not be aware of the full cost of these fees, as the Town of Queen Creek has been utilizing water credits to offset these costs for its customers since 2018. This was a result of Council resolutions to reduce costs to customers as an interim measure, with the ultimate goal of water self-sufficiency to manage costs locally and not depend on local groundwater pumping. Depending on the year the subdivision was developed, these costs were reduced anywhere from 33% to 100% – saving Queen Creek water customers approximately $58 million since 2018. This was an interim measure, and the Town cannot continue to offset CAGRD for water customers indefinitely.
Harquahala Water
Earlier this year, the Town purchased 5,000-acre feet of water from Harquahala Valley (per year), providing a proof of concept for this source of water. Harquahala Valley is a water storage basin designated by the State for transportation to other areas. The proof of concept included a hydrology study that demonstrated there is 8.2 million acre-feet of water available for transport over 100 years.
Once the proof of concept was complete, the Town had the opportunity to purchase additional water from Harquahala Valley. At the Sept. 17, 2025, meeting, the Town locked in a price to secure up to an additional 12,000 af of water (per year). This additional water makes 90% of the Town’s water supply insulated from water cuts and drought conditions.
At the Nov. 19, 2025 meeting, the Town approved to fund the additional 12,000-acre feet of water (1.2-million-acre feet over 100 years) using Water Infrastructure Financing Authority of Arizona financing and Certificates of Participation for an amount not to exceed $250 million. This is a historic investment for today and the future. The price of water continues to rise. And the water from Harquahala Valley is a reliable source, not subject to drought conditions and significantly reduces local groundwater pumping.
Funding the Water Purchase
When the Town becomes a designated water provider, any remaining replenishment fee will be paid directly by the Town. And with the additional water sources, there will be significantly less local groundwater pumping, meaning less replenishment requirements. The Town will pay for the water sources by creating a water resource fee that will replace the existing CAGRD replenishment fee that 88% of water customers are currently assessed.
The Town will not implement the water resource fee until CAGRD assessments are eliminated for water customers, anticipated for early 2027. When the Town becomes designated and implements a resource fee (in place of CAGRD), any current exemptions would be eliminated. While the structure of the Town’s resource fee is still being evaluated, it will apply to all customers as designation benefits the system as a whole. The resource fee will go through the Town’s public fee setting process.
Becoming a designated water provider is the next step in the Town’s development, like establishing a fire department in 2008, establishing a police department in 2022 and now securing QC’s water future, by becoming a designated water provider. The Town of Queen Creek is committed to securing a more reliable & locally controlled water future.
For more information, visit QueenCreekAZ.gov/WaterFuture. To watch the meeting, visit QueenCreekAZ.gov/WatchMeetings.
Media Contact: QCPIO@QueenCreekAZ.gov