Arizona’s dispute over the federal Colorado River plan has officially moved into the courts, adding another layer of uncertainty as the state prepares for major reductions in its water supply.
KJZZ reported that the Arizona Department of Water Resources and the Central Arizona Project have both moved to join Nevada’s lawsuit challenging the federal government’s new Colorado River operating plan.
Nevada’s lawsuit asks the Interior Department to reconsider the plan for reducing water use in Arizona, California, and Nevada. Arizona and CAP argue that the federal government did not adequately consider the economic and community impacts of the reductions and placed too much of the burden on the Lower Basin.
The federal framework allows reductions to Arizona, California, and Nevada of up to 40% per year under some conditions, while requiring no new mandatory reductions from the Upper Basin states of Colorado, New Mexico, Utah, and Wyoming.
Arizona officials are also raising a larger legal question about whether the Upper Basin is meeting its obligations under the 1922 Colorado River Compact.
KJZZ reported that the current lawsuit does not directly ask the courts to settle that dispute. However, Arizona’s filings outline arguments that could eventually form the basis of a much larger interstate case before the U.S. Supreme Court.
Water experts interviewed by KJZZ described that possibility as a “nuclear option” because a state-versus-state Colorado River case could take years and create even greater uncertainty.
For now, Arizona, California, and Nevada are still attempting to negotiate how Lower Basin reductions will be divided. The federal rules could also be replaced if all seven Basin states eventually reach their own agreement.
While that legal fight continues, Arizona communities are developing their own strategies for living with less Colorado River water.
KJZZ reported that Queen Creek has spent years reducing its dependence on groundwater and developing additional supplies to support the fast-growing community.
The town is investing in groundwater from the Harquahala Valley in western Maricopa County. Queen Creek Utilities Director Marc Skocypec said the basin has more than 8 million acre-feet of identified groundwater, compared with Queen Creek’s current annual demand of about 30,000 acre-feet.
That water must still be pumped and transported to the southeast Valley, including through the Central Arizona Project canal. Those costs are being incorporated into a water resource fee charged to customers.
According to Skocypec, the fee is designed not only to pay for current water investments but also to help replace and replenish supplies over time so the town can continue demonstrating a 100-year water supply.
Recent storms have brought a very different water challenge to parts of Arizona.
Salt River Project reported that record fall precipitation and near-record runoff prompted increased releases from Bartlett and Stewart Mountain dams on the Salt and Verde rivers.
SRP said October and November inflows into the Verde River watershed were on track to be the highest since 1972 and about eight times greater than average. The additional releases create room in the reservoir system for future storms, winter precipitation, and spring snowmelt.
Some of that water can be delivered to cities and irrigation districts, while water flowing through normally dry sections of the Salt River can also recharge groundwater.
The heavy rainfall has raised water levels elsewhere in the Southwest as well, but it has not ended the Colorado River shortage.
The Washington Post reported that Lake Powell increased from about 20% capacity in mid-September to nearly 24% by the beginning of November following heavy rainfall. Even with that increase, the reservoir remained about 13 feet lower than it was at the same time last year.
The difference between Arizona’s local reservoirs and the Colorado River system is important. SRP’s Salt and Verde reservoirs depend heavily on Arizona watersheds, while most Colorado River runoff comes from snowpack much farther upstream.
These reports show two very different sides of Arizona’s water situation. Heavy storms are providing short-term relief in some local watersheds, while the state continues preparing for a longer-term Colorado River shortage through litigation, new water supplies, and local planning.
What does this mean for CRIT?
CRIT holds senior Colorado River rights and therefore occupies a different legal position from CAP, which has a junior priority. However, the lawsuit could influence how federal operating rules are developed and how responsibility for future shortages is divided between the Upper and Lower basins.
The possibility of a larger interstate legal dispute is also worth following. Questions involving the Colorado River Compact, Upper Basin deliveries, and federal reservoir operations could affect the broader system where CRIT exercises its senior rights.
Queen Creek’s water strategy shows another side of the shortage. Cities with junior Colorado River supplies are increasingly looking toward groundwater, transported water, and other sources to maintain long-term reliability.
For CRIT, the recent storms are also a reminder that individual wet periods do not necessarily change the Colorado River’s long-term condition. Arizona’s local Salt and Verde systems can receive significant runoff while Lake Powell and Lake Mead remain historically low.
Sources
KJZZ: “Arizona water agencies are in court over the Colorado River. What comes next?”
https://www.kjzz.org/politics/2026-11-02/arizona-water-agencies-are-in-court-over-the-colorado-river-what-comes-next
KJZZ: “Queen Creek water plan is a model for other Valley cities, town’s utilities director says”
https://www.kjzz.org/the-show/2026-11-02/queen-creek-water-plan-is-a-model-for-other-valley-cities-towns-utilities-director-says
SRP Newsroom: “SRP Increasing Releases from Bartlett and Stewart Mountain Dams Following Record Fall Precipitation”
https://media.srpnet.com/srp-increasing-releases-from-bartlett-and-stewart-mountain-dams-following-record-fall-precipitation/
Washington Post: “Rivers hit historic levels in Southwest amid destructive floods”
https://www.washingtonpost.com/climate-environment/2026/11/02/floods-are-raising-western-lake-levels-water-crisis-still-grips-region/