Arizona Real Estate License Arizona Water Law Questions and Answers

Question 1

A developer plans to build a new 200-home subdivision within the boundaries of a designated Active Management Area (AMA).
Before the Arizona Department of Real Estate will issue a public report, what must the developer demonstrate to the Arizona Department of Water Resources (ADWR)?

Accepted Answer

An Assured Water Supply that is sufficient for at least 100 years.

Answer

That an Adequate Water Supply exists for the next 50 years.

Answer

Proof of ownership of surface water rights from a nearby river.

Answer

A plan to capture and utilize rainwater for all landscaping needs.

Question 2

Which of the following legal doctrines governs the use and allocation of surface water from Arizona's rivers and streams?

Accepted Answer

Prior Appropriation

Answer

Correlative Rights

Answer

Riparian Rights

Answer

Absolute Dominion

Question 3

A buyer purchases a rural property with a registered domestic water well. To comply with state law, what action must the new owner take shortly after the sale closes?

Accepted Answer

File a 'Request to Change Well Information' form with the ADWR.

Answer

Obtain a new drilling permit from the county.

Answer

Pay a one-time water transfer tax to the Arizona Department of Revenue.

Answer

Install a state-mandated metering device on the well pump.

Question 4

A large parcel of land is located within an Irrigation Non-Expansion Area (INA). What is the primary restriction on water use for this property?

Accepted Answer

New acres of land cannot be brought into cultivation for irrigation purposes.

Answer

No new domestic wells for residential use may be drilled.

Answer

All existing agricultural irrigation must cease within five years.

Answer

The property owner must purchase water credits from the Central Arizona Project.

Question 5

What is the key difference between Arizona's 'Assured Water Supply' program and its 'Adequate Water Supply' program?

Accepted Answer

The Assured program applies inside AMAs and is a strict requirement for development, while the Adequate program applies outside AMAs and is primarily a consumer disclosure program.

Answer

The Assured program is for agricultural use, while the Adequate program is for industrial use.

Answer

The Assured program requires a 50-year supply, while the Adequate program requires a 100-year supply.

Answer

The Assured program is managed by federal authorities, while the Adequate program is managed by individual counties.

Question 6

A parcel of land within the Phoenix AMA has a Type 2 Non-Irrigation Grandfathered Groundwater Right. If the land is sold to a new owner, what typically happens to this right?

Accepted Answer

The right is appurtenant to the land and transfers to the new owner, but its use may be limited.

Answer

The right is retired and can no longer be used.

Answer

The seller can sell the water right separately to a third party.

Answer

The right is automatically extinguished and reverts to the state for reallocation.

A developer plans to build a new 200-home subdivision within the boundaries of a designated Active Management Area (AMA).Before the Arizona Department of Real Estate will issue a public report, what must the developer demonstrate to the Arizona Department of Water Resources (ADWR)?

A developer plans to build a new 200-home subdivision within the boundaries of a designated Active Management Area (AMA).
Before the Arizona Department of Real Estate will issue a public report, what must the developer demonstrate to the Arizona Department of Water Resources (ADWR)?