Lease Water Rights in Arizona
Arizona water values are being driven by scarcity on the Colorado River and explosive growth around Phoenix. Long-term storage credits trade actively, CAP allocations move by lease, and tribal water leases are some of the largest transactions in the state.
- Doctrine
- Prior appropriation; managed groundwater (AMAs)
- Administered by
- Arizona Department of Water Resources (ADWR)
- Primary demand
- Municipal, tribal, industrial
- Structures
- Term leases, options, bank or program deposits
What do you hold?
How water leasing works in Arizona
Arizona administers surface water under prior appropriation through ADWR, and groundwater under the 1980 Groundwater Management Act, which created Active Management Areas around the major metros. Inside AMAs, grandfathered groundwater rights and Type 2 rights can be conveyed, and the assured water supply rules make paper water genuinely valuable to developers.
The most active markets are in Colorado River water and storage. Central Arizona Project subcontract water is leased between cities, districts, and industry, several tribes lease settled water under congressional authority, and long-term storage credits, earned by storing water underground, are bought and leased as a drought hedge. Shortage tiers on the river have made every one of these instruments more valuable.
What the Arizona market looks like
Arizona rates are deal-specific and often confidential, but sustained Colorado River shortage and Phoenix-area growth have kept demand strong across CAP water, storage credits, and effluent.
Full sourced table on the water lease rates page.
Lease structures that fit Arizona
Leasing water in Arizona: FAQ
Can I lease my water rights in Arizona?
Yes. Arizona allows water rights to be leased, subject to approval by the Arizona Department of Water Resources (ADWR). The lease has to respect other users' priority dates and, in most cases, goes through a state review before the water can legally change hands or change use. WaterLeases walks you through the path and connects you with vetted professionals in Arizona when a deal makes sense.
Who approves a water lease in Arizona?
The Arizona Department of Water Resources (ADWR) administers water rights in Arizona. Depending on the lease, you may need a change approval, a bank or trust filing, or district consent before the lessee can take delivery. The paperwork protects your priority date; skipping it is how owners lose value.
What is my Arizona water right worth to lease?
It depends on the basin, the priority date, the reliability of supply, and who needs the water. Arizona rates are deal-specific and often confidential, but sustained Colorado River shortage and Phoenix-area growth have kept demand strong across CAP water, storage credits, and effluent. A confidential WaterLeases valuation gives you a defensible range before you talk to any buyer.
Will leasing my Arizona water right risk forfeiture or abandonment?
Done properly, no. A state-approved lease is generally treated as beneficial use, which protects the right while someone else uses the water. That protection is one of the main reasons owners lease through official channels instead of letting water sit unused.