COB Policy on Water Allocations in Desgnated Areas.pdf

City of Buckeye Water Policy
Title: City of Buckeye Policy on Water Allocations in Number:
Designated Areas
Drafted by: Terry Lowe, Water Resources Director Date: April 20, 2026
Revised by: Date:
I. INTRODUCTION
The City of Buckeye (“City”) is committed to the development, management, and
preservation of sustainable water resources that are strategically planned, cost-effective, and
capable of supporting the long-term viability of the City’s water portfolio.
As the City continues to grow and expand its water service areas, it may pursue the
establishment of a Designation of Assured Water Supply (DAWS) for defined portions of its
service area. This designation serves as a mechanism to support responsible growth while
ensuring sound and sustainable water resource management. In doing so, a portion of the
City’s water portfolio and/or physically available groundwater resources may be allocated to
support new development.
The purpose of this policy is to guide development and growth decisions by establishing a
framework for the equitable, efficient, and sustainable allocation of the City’s water supplies
among existing customers and future development.
II. DEFINITIONS
For purposes of this policy, the following definitions shall apply:
Active Management Area (AMA): A geographic area designated by the State of Arizona
where groundwater use is regulated pursuant to the Groundwater Management Act.
Alternative Designation of Assured Water Supply (ADAWS): A regulatory pathway that
allows a water provider to obtain a 100-year assured water supply designation. Blending the
use of grandfathered groundwater use with a phased in renewable water supply approach.
Assured Water Supply (AWS): A determination by the Arizona Department of Water
Resources (ADWR) that sufficient water of adequate quality will be continuously, legally,
and physically available to meet water demands for at least 100 years.
Central Arizona Groundwater Replenishment District (CAGRD): An entity established
to replenish groundwater used by its members within AMAs to help meet assured water
supply requirements.
Central Arizona Project (CAP): A system that delivers Colorado River water throughout
central and southern Arizona.
Certificate of Assured Water Supply (CAWS): A certificate issued by ADWR to a
developer demonstrating that a proposed subdivision has access to a 100-year assured water
supply.
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Designation of Assured Water Supply (DAWS): A designation granted by ADWR to a
municipal water provider confirming that it has sufficient water supplies to serve customers
within a designated service area for at least 100 years.
Development Agreement (DA): A legally binding agreement between the City and a
developer outlining obligations related to infrastructure, water supply, and development
conditions.
Extinguishment Credits (ECs): Credits generated through the permanent retirement of
groundwater rights for use in meeting water supply requirements.
Grandfathered Rights: Rights to use groundwater based on historic use established under
the Groundwater Management Act.
Grandfathered Residential: Residential developments established prior to February 1995
that are exempt from replenishment requirements
Long-Term Storage Credits (LTSCs): Credits earned by storing excess water underground
for future recovery and use.
Member Lands: Lands enrolled in the CAGRD to be consistent with the goals of the Active
Management Area under the Assured Water Supply (AWS) Program.
Member Service Area (MSA): A municipal water provider that enrolls its service area in
the CAGRD to meet AWS replenishment obligations to obtain a DAWS.
Multiple or Large Meter (MLM) User: A commercial, industrial, or institutional customer
with significant water demands requiring additional evaluation.
Non-AMA Groundwater: Groundwater located outside of an Active Management Area and
not subject to the same regulatory restrictions.
Reclaimed Water: Treated wastewater that is suitable for beneficial reuse for non-potable or
approved potable purposes.
Water Portfolio: The aggregate of water resources, credits, and supplies available to the city
for use in meeting current and future water demands.
III. RELATED POLICIES
a. Use of Reclaimed Water
b. Water Acquisition and Funding
c. Water Conservation
d. Strategic Water Planning
IV. ASSURED WATER SUPPLY (AWS) PROGRAM
The AWS Program, established under the 1980 Groundwater Management Act, is designed
to protect Arizona’s long-term water supplies, promote sustainable groundwater
management, and encourage the use of renewable water resources within Active Management
Areas.
The city may establish a designated service area under one of the following frameworks:
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a. Designation of Assured Water Supply (DAWS): A DAWS is granted when a water
provider demonstrates to ADWR that it has sufficient water supplies to meet existing
and projected customer demands for a minimum of 100 years. The provider’s water
portfolio must equal or exceed total demand within the designated service area.
b. Alternative DAWS (ADAWS): ADAWS provides an alternative compliance pathway
for providers to use verified physically available groundwater sources tied to existing
CAWS. This approach includes a groundwater allowance that must be repaid over
time by introducing renewable or non-groundwater resources. If ADWR requires
repayment, part of any new renewable supply in the area is allocated to the acquirer
until the allowance is fully restored.
c. Designation approvals are typically granted for renewable periods, commonly 10 - 15
years.
V. CITY’S WATER PORTFOLIO
The City’s Water Portfolio consists of a diverse set of water resources and assets that are
used to meet customer demands. These resources will be used to offset groundwater
pumping. The city’s portfolio may be used to support growth in advance of additional
resources being used to meet new development needs.
The City of Buckeye’s Water Portfolio includes, but is not limited to:
• Central Arizona Project (CAP) subcontract
• Reclaimed Water
• Non-AMA Groundwater
• Longterm Storage Credits (LTSCs)
• Extinguishment Credits (ECs)
• Ag-to-Urban Credits (Groundwater Savings Credits)
VI. DESIGNATION STRATEGY
The city will pursue the establishment of designated service areas when it is determined
to be beneficial to long-term water sustainability to meet community demands and support
growth. Objectives of designation include:
a. Enhancing efficiency and effectiveness in water resource management
b. Expanding access to additional water portfolio assets
c. Supporting economic development and planned growth
d. Minimizing impacts on existing customers
The selection of a designation framework will be based on the quantity, reliability, and
type of water portfolio assets available to serve the proposed area.
VII. WATER ALLOCATIONS IN NEW DESIGNATED AREAS
a. Existing Customers
During the establishment of a designation of assured water supply, whether under
a DAWS, ADAWS, or future designation structure, the city will have quantified
the water demands for existing customers. Existing customers will likely fall into
one of three categories: Grandfathered Residential, Member Lands, or Non-
subdivided Lands (commercial).
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All groundwater used to serve existing and future customers will be required to be
replenished by the city. The water used to replenish the aquifer will be part of the
total renewable water supplies used in establishing the designation. Water
allocations shall be administered as follows:
1. Grandfathered Residential.
All existing customer demands in newly formed designated service areas will
be allocated a portion of the designation volume that was established from the
existing city’s portfolio.
2. Member Lands.
i. DAWS. For areas to be designated under a DAWS, Member Lands
will receive allocations similar to grandfathered customers.
ii. ADAWS. For areas to be designated under an ADAWS, Member
Lands will remain part of the CAGRD, per Arizona Administrative
Code (A.A.C.) Title 12, Chapter 15, Article 7, and will transition into
the city’s Member Service Area (MSA) over a 10-year period. Upon
customer transition to MSA, the city will allocate the appropriate
volume of its water portfolio towards replenishment of the groundwater
demands of these customers.
3. Non-subdivided Lands.
MLMs will be required to enter into a Development Agreement with the city
to address how their large water demands will offset any groundwater pumped
upon the service area becoming designated. The MLM will be responsible for
providing a solution that will not negatively impact the city’s portfolio.
Customers of non-subdivided lands that receive water service at the time of
designation will be allocated water based on the demands at the time of
designation from the existing city’s portfolio. MLM demands will be met with
access to water supplies identified by prior development agreement with the
city at the time of designation.
b. Future Development/Customers
For new and future customers into a Designated Area, water allocations will vary
based on the designation framework.
1. New Designation Establishment.
Developments that contribute to the establishment of the DAWS through
utilization of assigned CAWS or dedication to the city of non-groundwater
water supplies shall receive allocations proportional to:
• The total volume of the identified in the CAWS plus any additional water
adjusted utilizing agreed to demand factors
• The total volume of renewable water supplies dedicated to the city for use
treatment and delivery to the development
2. Established Designations.
New Developments seeking inclusion in a DAWS area will be required to
dedicate non-groundwater water supplies or compensate the city for a 100-year
water supply from which the city would allocate from its water portfolio (if
available) or acquire a supply on behalf of the development. Developments
may also be required to participate in future redesignation efforts.
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c. Development Agreement (DA)
All development-related water supply obligations, including designation
framework, water commitments, and long-term responsibilities, shall be
formalized through Development Agreements between the city and the developer.
VIII. NON-CITY WATER RIGHTS
Developments with legally available on-site water rights, including Type 1 and Type 2
groundwater rights, should utilize these resources to serve end users or landowners, in
accordance with the laws governing such rights, to meet their water demands. The use of
such rights reduces reliance on the city’s water portfolio and enhances overall system
sustainability.
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