As Arizona prepares for reduced Colorado River deliveries, the state is beginning to shift from years of saving water for future shortages to actually using some of those reserves.
KJZZ reported that the Arizona Water Banking Authority will use a one-year policy to fully “firm” water supplies lost by participating cities and utilities because of Colorado River shortages. Firming provides backup water to eligible users when their normal Central Arizona Project supplies are reduced.
The strategy could conserve up to 56,179 acre-feet in 2027 as cities and utilities rely on previously stored water rather than additional Colorado River deliveries.
The Water Banking Authority was created to store unused Colorado River water underground for future shortages. Arizona Water News reported that the agency is now entering a different phase. With less excess CAP water available for storage and shortages becoming more likely, the focus is shifting toward recovering and distributing the long-term storage credits accumulated over previous decades.
The Water Bank also has responsibilities for Tribal firming under the Arizona Water Settlements Act, along with providing backup supplies for certain municipal and industrial CAP users.
Stored water can help Arizona manage near-term shortages, but state officials are also considering how to bring entirely new supplies into Arizona over the longer term.
The Arizona Capitol Times reported that the Water Infrastructure Finance Authority of Arizona is studying five potential water importation projects. Together, the projects could eventually produce hundreds of thousands of acre-feet annually, although none have entered construction.
Among the projects being studied are desalination plants in Mexico and California, reclaimed-water projects involving Mexico, and proposals that could exchange new water supplies for portions of Colorado River allocations.
Two projects approved for further study in early October involve a proposed desalination plant near Mexico’s Gulf of California and a project that would recover and treat reclaimed water in Mexico for use as part of Arizona’s future supply.
Early estimates vary widely. The five projects could potentially produce nearly 1 million acre-feet annually under the highest estimates, while more conservative projections place the combined amount closer to 361,000 acre-feet.
Arizona’s expected Colorado River reduction is about 760,000 acre-feet per year, showing why state officials are considering several different options rather than relying on one project.
Cost remains one of the largest obstacles. Arizona lawmakers have provided WIFA about $386 million for long-term augmentation work, but individual desalination projects could cost billions of dollars.
While the state studies new supplies, some cities are also looking more closely at how much water new developments use.
KTAR reported that Scottsdale is considering a large-water-user ordinance in response to Colorado River reductions. City staff recommended requiring new large users to submit conservation plans, while council members also discussed additional review for projects expected to use more than 500,000 gallons of water per day.
The discussion reflects a broader question facing Arizona: how much water can be saved through conservation compared with how much new water needs to be developed.
ABC15 reported that agriculture accounts for nearly three-quarters of Arizona’s overall water use, significantly more than sectors such as golf courses or data centers. That makes agriculture an important part of statewide water discussions, particularly as officials look for ways to reduce demand while protecting Arizona’s economy and food production.
Conditions upstream show why those conversations continue.
KUNC reported that Blue Mesa Reservoir, historically Colorado’s largest body of water, fell below 20% full this year after a poor snowpack and prolonged drought.
Low water forced the Elk Creek Marina to close in early July, months earlier than usual, and affected recreation, fisheries, and agriculture. Farmers receiving water from the Gunnison River system also had to leave some fields dry or reduce production.
Blue Mesa is part of the Colorado River Storage Project and helps store Upper Basin water used for communities, agriculture, hydropower, and environmental purposes. Its condition provides another indication of the water stress affecting the Upper Basin before water reaches Lake Powell and eventually the Lower Basin.
New research published during the week also suggests drought conditions across the West may be more connected than previously understood.
Aspen Public Radio reported that researchers analyzed more than 20 years of data from the Upper and Lower Colorado River basins, Great Basin, California, and Pacific Northwest.
The researchers found that wet and dry conditions in separate watersheds often happen at the same time. Six major watershed pairings experienced synchronized runoff conditions more than half the time.
That connection can make managing drought more difficult. If several neighboring regions are dry at once, one basin may not have enough surplus water to help another.
The research also found that the Southwest is particularly vulnerable to “hydrologic whiplash,” or rapid shifts between unusually wet and unusually dry conditions.
Together, the Oct. 2–9 reports show that Colorado River planning is increasingly moving in two directions at once. Arizona is preparing to use water it stored for shortages while also studying expensive new supplies that could take years to develop. Cities are considering stronger conservation requirements, while severe drought continues to affect reservoirs and communities upstream.
What does this mean for CRIT?
For CRIT, the shift at the Arizona Water Banking Authority is worth following because the agency has responsibilities involving Tribal firming as shortages deepen.
CRIT’s senior Colorado River rights place the Tribe in a different position from many Central Arizona Project users that depend on stored water to replace reduced deliveries. Still, the transition from storing water to recovering it shows how Arizona is beginning to use some of the reserves built specifically for conditions like those facing the river today.
The water importation and desalination proposals are also significant because they represent Arizona’s effort to develop supplies outside the existing Colorado River system. If any of those projects advance, they could influence how much pressure is placed on existing river users in future shortage negotiations.
The agricultural water-use discussion is particularly relevant to CRIT because agriculture remains a major part of the Tribe’s economy and water use. Basin-wide discussions about agricultural conservation must also account for differences in water-right priority, Tribal sovereignty, and the economic role farming plays in communities along the river.
Conditions at Blue Mesa provide another reminder that Lower Basin water issues begin far upstream. Snowpack, runoff, and reservoir conditions in Colorado ultimately affect Lake Powell, Lake Mead, and the larger system in which CRIT exercises its senior rights.
This week’s developments reinforce the importance of protecting senior rights while continuing to monitor how stored water, conservation, new supply projects, and Upper Basin hydrology change the Colorado River system.
Sources
KJZZ: “Arizona cities could tap into a water savings account to help with Colorado River cuts”
https://www.kjzz.org/business/2026-10-02/arizona-cities-could-tap-into-a-water-savings-account-to-help-with-colorado-river-cuts
Arizona Water News: “The Arizona Water Banking Authority undergoes a change of direction”
https://www.azwater.gov/news/articles/2026-09-23
Arizona Capitol Times: “Arizona exploring long-term water importation options”
https://azcapitoltimes.com/news/2026/10/07/arizona-exploring-long-term-water-importation-options/
KTAR News: “Scottsdale considers tighter rules for major water users”
https://ktar.com/watch/water-watch-scottsdale-considers-tighter-rules-for-major-water-users/01a1144f-4208-8008-c44a-fe8d6fa3e94b
ABC15 Arizona: “Where does Arizona’s water actually go? A look inside the numbers”
https://www.abc15.com/weather/impact-earth/where-does-arizonas-water-actually-go-a-look-inside-the-numbers
KUNC Northern Colorado Public Radio: “Drought has decimated Colorado’s biggest reservoir, and the livelihoods of those who depend on it”
https://www.kunc.org/regional-news/2026-10-02/drought-has-decimated-colorados-biggest-reservoir-and-the-livelihoods-of-those-who-depend-on-it
Aspen Public Radio / KUNR: “Western droughts are more connected than scientists thought, study finds”
https://www.aspenpublicradio.org/2026-10-08/western-droughts-connected-scientists-thought-study
