Arizona’s developers fight water limits in a dark-money showdown

A dark-money-backed lawsuit is challenging Arizona’s groundbreaking limits on development in areas with rapidly disappearing groundwater, a move that could reshape water policy across the Southwest.

Katya Schwenk reports for The Lever.


In short:

  • Arizona regulators halted new housing developments in Phoenix’s fast-growing suburbs in 2023, citing a severe groundwater shortage that threatens the region’s future.
  • Developers, backed by the Goldwater Institute, are suing to overturn the limits, arguing state groundwater models are flawed and that the restrictions are worsening the housing crisis.
  • Experts warn that Phoenix is running out of groundwater, a finite resource that, once gone, won’t replenish for thousands of years — making water conservation critical as climate change accelerates droughts.

Key quote:

“This is nothing but a shameless and partisan attack by bad actor developers trying to get a short-term profit by pumping the water out from under Arizona families and farmers.”

— Spokesperson for Arizona Gov. Katie Hobbs

Why this matters:

Phoenix’s sprawl is at odds with its water reality. As the Southwest dries up, the outcome of this legal battle could determine whether Arizona prioritizes long-term water security or short-term development profits. It could have a bearing on how other arid states approach water policy as well.

Read more: Capturing and reusing urban storm water could be a boon for water-stressed cities.

The front steps of the Supreme Court of the US

Leaked memos show Supreme Court ignored climate dangers in Obama regs fight

Conservative justices focused on industry costs when blocking the Clean Power Plan, the first climate rule proposed for the power sector.
Sprawling solar installation in China

Solar growth in China and India powers clean energy surge by 2025

Record growth in solar, especially in China and India, was a driving factor for clean energy sources surpassing the world’s strong demand for electricity in 2025.
USA flag and Iran flag on cracked wall damage. United States of America and Iran have conflict in nuclear weapons and Strait of Hormuz.
Credit: Dilok/BigStock Photo ID: 305909299

Democrats urged to link clean energy to affordability as Iran war hikes up prices

Climate leaders say Democrats need to promote clean energy as a way to cut costs for Americans as war roils oil markets.

Manufacturing of solar panel system in factory.
Credit: wedmov/Big Stock Photo ID: 320915881

Are long-promised solar perovskites finally hitting mass production?

Tandem PV has built an automated factory line in California to produce glass coated with materials that it says can improve solar panel efficiency by one-third.

A closeup view of the top of a wind turbine

Can renewables withstand our worsening climate?

Renewables have been touted as the silver bullet to tackling climate change, but can they withstand our warming planet?
An overlooking view of Elephant Butte reservoir on the Rio Grande River, New Mexico
Credit: CheriAlguire/BigStock Photo ID: 470280473

Facing drought and low snowpack, Rio Grande states expect a “challenging” year

Officials at the annual Rio Grande Compact Commission meeting said they expect river flows this year to be among the lowest in history.

The oil rig Sevan Louisiana off the Curacao coast in the Caribbean.
Credit: Zaschnaus/BigStock Photo ID: 288731746

Environmental groups sue to stop BP Kaskida drilling plan

Opponents of the project, known as Kaskida, say an accident could be even worse than the Deepwater Horizon spill. The company says it’s learned from the past.
From our Newsroom
Multiple Houston-area oil and gas facilities that have violated pollution laws are seeking permit renewals

Multiple Houston-area oil and gas facilities that have violated pollution laws are seeking permit renewals

One facility has emitted cancer-causing chemicals into waterways at levels up to 520% higher than legal limits.

Regulators are underestimating health impacts from air pollution: Study

Regulators are underestimating health impacts from air pollution: Study

"The reality is, we are not exposed to one chemical at a time.”

Pennsylvania governor Josh Shapiro speaks with the state flag and American flag behind him.

Two years into his term, has Gov. Shapiro kept his promises to regulate Pennsylvania’s fracking industry?

A new report assesses the administration’s progress and makes new recommendations

silhouette of people holding hands by a lake at sunset

An open letter from EPA staff to the American public

“We cannot stand by and allow this to happen. We need to hold this administration accountable.”

wildfire retardants being sprayed by plane

New evidence links heavy metal pollution with wildfire retardants

“The chemical black box” that blankets wildfire-impacted areas is increasingly under scrutiny.

Stay informed: sign up for The Daily Climate newsletter
Top news on climate impacts, solutions, politics, drivers. Delivered to your inbox week days.