Arizona Real Estate License Arizona Water Law Questions and Answers 1 — 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)?
- That an Adequate Water Supply exists for the next 50 years.
- Proof of ownership of surface water rights from a nearby river.
- A plan to capture and utilize rainwater for all landscaping needs.
- An Assured Water Supply that is sufficient for at least 100 years. (Correct answer)
Correct answer: An Assured Water Supply that is sufficient for at least 100 years.
Arizona's Groundwater Management Act requires that new subdivisions within an Active Management Area (AMA) demonstrate an Assured Water Supply. This means the developer must prove to the ADWR that a physically, legally, and continuously available water supply of adequate quality exists to meet the needs of the proposed development for at least 100 years.
Question 2: Which of the following legal doctrines governs the use and allocation of surface water from Arizona's rivers and streams?
- Correlative Rights
- Riparian Rights
- Prior Appropriation (Correct answer)
- Absolute Dominion
Correct answer: Prior Appropriation
Arizona, like most western states, uses the doctrine of Prior Appropriation for surface water. This doctrine is often summarized as "first in time, first in right," meaning the first person to divert and put the water to a beneficial use has a senior right to the water over those who appropriate water later.
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?
- File a 'Request to Change Well Information' form with the ADWR. (Correct answer)
- Obtain a new drilling permit from the county.
- Pay a one-time water transfer tax to the Arizona Department of Revenue.
- Install a state-mandated metering device on the well pump.
Correct answer: File a 'Request to Change Well Information' form with the ADWR.
When a property with a well is sold, the new owner is required to notify the Arizona Department of Water Resources (ADWR) of the change in ownership. This is done by filing a 'Request to Change Well Information' form (formerly Form 55), ensuring the state's well registry remains accurate.
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?
- No new domestic wells for residential use may be drilled.
- All existing agricultural irrigation must cease within five years.
- New acres of land cannot be brought into cultivation for irrigation purposes. (Correct answer)
- The property owner must purchase water credits from the Central Arizona Project.
Correct answer: New acres of land cannot be brought into cultivation for irrigation purposes.
The purpose of an Irrigation Non-Expansion Area (INA) is to preserve the existing groundwater supply for established agricultural users. Therefore, the primary rule within an INA is that land that was not irrigated in the five years preceding the INA's designation cannot be newly developed for irrigation.
Question 5: What is the key difference between Arizona's 'Assured Water Supply' program and its 'Adequate Water Supply' program?
- The Assured program is for agricultural use, while the Adequate program is for industrial use.
- 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. (Correct answer)
- The Assured program requires a 50-year supply, while the Adequate program requires a 100-year supply.
- The Assured program is managed by federal authorities, while the Adequate program is managed by individual counties.
Correct 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.
The Assured Water Supply program operates within the state's five Active Management Areas (AMAs) and is a mandatory requirement that developers must meet to prove a 100-year water supply before selling lots. The Adequate Water Supply program operates outside the AMAs, also assesses a 100-year supply, but serves as a consumer advisory tool where the developer must disclose the ADWR's findings to potential buyers.
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?
- The right is retired and can no longer be used.
- The seller can sell the water right separately to a third party.
- The right is automatically extinguished and reverts to the state for reallocation.
- The right is appurtenant to the land and transfers to the new owner, but its use may be limited. (Correct answer)
Correct answer: The right is appurtenant to the land and transfers to the new owner, but its use may be limited.
A Type 2 Non-Irrigation Grandfathered Right is based on historical groundwater pumping for a non-irrigation use (e.g., industry, a golf course) before the 1980 Groundwater Management Act. While it can sometimes be sold separately from the land, it is often appurtenant and transfers with the land. However, its use can be restricted to specific purposes, such as mineral extraction if that was its historical use.
Arizona Real Estate License Arizona Water Law Questions and Answers 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)?