• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind

2

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

3

Scott Bessent casually says the U.S. has more than $1 trillion in gold—and that it doesn’t matter for the dollar

1

The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind

2

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

3

Scott Bessent casually says the U.S. has more than $1 trillion in gold—and that it doesn’t matter for the dollar
EnvironmentDrought

Arizona is cutting housing construction near Phoenix because there’s no longer enough water

By
Jacques Billeaud
Jacques Billeaud
,
Suman Naishadham
Suman Naishadham
, and
The Associated Press
The Associated Press
Down Arrow Button Icon
By
Jacques Billeaud
Jacques Billeaud
,
Suman Naishadham
Suman Naishadham
, and
The Associated Press
The Associated Press
Down Arrow Button Icon
June 2, 2023, 7:48 AM ET
A construction worker continues building at a large housing development, April 21, 2020, in Phoenix.
A construction worker continues building at a large housing development, April 21, 2020, in Phoenix. Ross D. Franklin—AP
Add Fortune on Google for similar content.

Arizona will not approve new housing construction on the fast-growing edges of metro Phoenix that rely on groundwater thanks to years of overuse and a multi-decade drought that is sapping its water supply.

Recommended Video

In a news conference Thursday, Gov. Katie Hobbs announced the restrictions that could affect some of the fastest-growing suburbs of the nation’s fifth-largest city.

Officials said developers could still build in the affected areas but would need to find alternative water sources to do so — such as surface or recycled water.

Driving the state’s decision was a projection that showed that over the next 100 years, demand in metro Phoenix for almost 4.9 million acre-feet of groundwater would be unmet without further action, Hobbs said. An acre-foot of water is roughly enough for two to three U.S. households per year.

Despite the move, the governor said the state isn’t running out of water. “Nobody who has water is going to lose their water,” Hobbs said.

Officials said the move would not affect existing homeowners who already have assured water supplies.

Hobbs added that there are 80,000 unbuilt homes that will be able to move forward because they already have assured water supply certificates within the Phoenix Active Management Area, a designation used for regulating groundwater.

Years of drought in the West worsened by climate change have ratcheted up pressure among Western states to use less water. Much of the focus has stayed on the dwindling Colorado River, a main water source for Arizona and six other Western states. Over the past two years, Arizona’s supply from the 1,450-mile powerhouse of the West has been cut twice.

Phoenix relies on imported Colorado River water and also uses water from the in-state Salt and Verde rivers. A small amount of the city’s water supply comes from groundwater and recycled wastewater.

The drought has made groundwater — held in underground aquifers that can take many years to be replenished — even more vital.

Under a 1980 state law aimed at protecting the state’s aquifers, Phoenix, Tucson and other Arizona cities have restrictions on how much groundwater they can pump. But in rural areas, there are few limitations on its use.

Long pumped by farmers and rural residents in Arizona with little oversight, Hobbs and other state officials recently vowed to take more steps to protect the state’s groundwater supplies.

In rapidly growing Phoenix suburbs such as Queen Creek and Buckeye, developers have relied on unallocated groundwater to show that they had adequate water supplies for the next 100 years, which Arizona requires for building permits in some areas.

“Developers rely on groundwater because it has been frankly, cheaper and easier for them, and they have been able to move through the process much more quickly,” said Nicole Klobas, chief counsel for the Arizona Department of Water Resources.

Under the new restrictions, that won’t be possible.

“It closes off that path,” said Kathryn Sorenson, director of research at the Kyl Center for Water Policy at Arizona State University.

Because the rule largely affects cities and towns outside Phoenix and larger cities in the metro area, Sorenson said developers would likely “weigh whether they want to continue to buy relatively cheap land … and incur the cost of developing a whole new water supply versus purchase land that is probably more expensive without the boundaries of a designated city.”

Subscribe to Fortune Gulf Brief. Every Tuesday, this new newsletter delivers clear-eyed, authoritative intelligence on the deals, decisions, policies, and power shifts shaping one of the world’s most consequential regions, written for the people who need to act on it. Sign up here.
About the Authors
By Jacques Billeaud
See full bioRight Arrow Button Icon
By Suman Naishadham
See full bioRight Arrow Button Icon
By The Associated Press
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Environment

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in Environment

ford
EnergyAutos
Ford’s F-150 now doubles as a $1,100 home backup generator
By Alexa St. John and The Associated PressJuly 23, 2026
2 hours ago
Northrop Grumman launches private robot mission to strap jetpacks on aging satellites
InnovationSpaceX
Northrop Grumman launches private robot mission to strap jetpacks on aging satellites
By Marcia DunnJuly 22, 2026
1 day ago
A ski worker in winter skiing gear strikes a pose in front of a ski slope in Lesotho.
Travel & LeisureDonald Trump
In Lesotho, the country’s only fully operational ski resort offers snowy slopes for Africa’s ski enthusiasts
By The Associated Press and Mogomotsi MagomeJuly 21, 2026
2 days ago
Lauren Sánchez Bezos put $34 million behind reinventing what clothes are made of—and stirred a debate about Amazon
Environmentphilanthropy
Lauren Sánchez Bezos put $34 million behind reinventing what clothes are made of—and stirred a debate about Amazon
By Sydney LakeJuly 21, 2026
2 days ago
bird
EnvironmentAnimals
The rare ‘great conservation success story’ is happening off New England as $10 million over 10 years brings back the quirky oystercatcher bird
By Michael Casey and The Associated PressJuly 21, 2026
2 days ago
k
Commentarypower
What I keep hearing from Fortune 500 CEOs: ‘We have no idea what we’re actually paying for power’
By Kiran BhatrajuJuly 21, 2026
2 days ago

Most Popular

The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind
Real Estate
The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind
By Nick LichtenbergJuly 22, 2026
1 day ago
Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
Success
Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
By Sasha RogelbergJuly 20, 2026
3 days ago
Scott Bessent casually says the U.S. has more than $1 trillion in gold—and that it doesn’t matter for the dollar
Economy
Scott Bessent casually says the U.S. has more than $1 trillion in gold—and that it doesn’t matter for the dollar
By Sasha RogelbergJuly 22, 2026
23 hours ago
'The man who dies rich dies disgraced': The last time America had such wealth inequality, Andrew Carnegie knew he had to give it all away
Success
'The man who dies rich dies disgraced': The last time America had such wealth inequality, Andrew Carnegie knew he had to give it all away
By Nick LichtenbergJuly 22, 2026
1 day ago
Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
AI
Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
By Eva RoytburgJuly 21, 2026
2 days ago
Despite a $156 million contract, Knicks star Jalen Brunson still calls his parents for financial advice any time he makes a big purchase
Success
Despite a $156 million contract, Knicks star Jalen Brunson still calls his parents for financial advice any time he makes a big purchase
By Emma BurleighJuly 21, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.