Active Management Area

Water Exchange Act 

The Exchange Act became effective September 30, 1992, and has been amended in 1993 and 1994. This new chapter 4 of Title 45, Arizona Revised Statutes, administered by the Arizona Department of Water Resources, provides five functions: 

1. authorizes and regulates the exchange of any type of water for any type of water, subject to certain conditions; 
2. establishes four classifications of exchanges, including exempt, enrolled, permitted, and noticed exchanges, with different registration and reporting requirements, and different conditions for conducting the exchange, for each class; 
3. clarifies how existing water laws apply to withdrawal, diversion, measurement, transportation, use and reporting of water a person gives and receives in any exchange, generally establishing a giver rule, thus ending much of the pre-exchange law uncertainty regarding the legality of existing or planned exchanges; 
4. sets up recording and annual reporting requirements for enrolled, permitted and noticed water exchange activities, additional to those required by existing water laws for the individual waters in the exchanges; and 
5. gives the Director the authority to inspect, audit, and investigate exchanges, and to issue cease and desist orders and recommend substantial civil penalties after determination of a violation by administrative hearing. 

Statutes related to exchanges are A.R.S. § 45-1001 through 45-1006, 45-1021 through 45-1022, 45-1041 through 45-1046, 45-1051 through 45-1052, and 45-1061 through 45-1063