Active Management Area

ADWR is authorized by statute to consider land to have been in irrigation and thus eligible for an irrigation grandfathered right, if substantial capital investment (“SCI”) has been made for the subjugation of such land for irrigation use in initial AMAs (A.R.S. § 45-452(A)(1) and (2)) and subsequent AMAs (A.R.S. § 45-452(G)(1) and (2)).

• For an area that was not previously an INA, substantial capital investment must have been made within the five-year period preceding the date of the notice of the initiation of designation procedures or the call for the election A.R.S. § 45-452(G)(1) and § 45-465.
• For an area that was previously an INA, substantial capital investment needs to have been made in the twelve months before the date of the notice of the initiation of designation procedures or the call for the election A.R.S. § 45-452(G)(2).

• The AMA-specific qualifying periods for SCI expenses are:

  1. 1. Douglas AMA*:

     1. For the lands that were previously within the Douglas INA boundary: August 30, 2021 - August 30, 2022.

     2. For lands that were not previously within the Douglas INA boundary: August 30, 2017 - August 30, 2022.

     3. Please note that the Douglas AMA boundary expanded from the original Douglas INA boundary. The new boundary is based on the groundwater basin boundary, which was established pursuant to A.R.S. § 45-403.

  2. 2. Willcox AMA: October 23, 2019 - October 23, 2024.

  3. 3. Ranegras Plain AMA: November 5, 2020 - November 5, 2025.

• Expenses made for the subjugation of land for an irrigation use including the installation of on-site irrigation systems and drilling and construction of wells are considered eligible under A.R.S. § 45-452(G)(1) and (2).
• Eligible expenses may include well deepening or refurbishment, fencing, improvements to the land such as land clearing and leveling, or improvement of irrigation systems.
• Fees for leasing, professional services, and purchase of supplies and equipment made for these improvements are not alone sufficient to qualify as substantial capital investment but may be considered by ADWR in addition to the other evidence of substantial capital investments.
• The purchase price of land alone is not an eligible expense. However, if an applicant can demonstrate that a premium to the purchase price was paid for irrigation infrastructure or other improvements to the land for irrigation purposes, ADWR will take such evidence under consideration.
• For additional guidance on eligible SCI expenses, please see the folowing: GW2 Policy Guidance Memorandum- Irrigation grandfathered groundwater rights (IGFR) based on substantial capital investment.

• Expenses that were made outside of the eligible qualifying time period (see Question #2, above, for qualifying periods for Douglas AMA, Willcox AMA, and Ranegras Plain AMA).
• Expenses made to benefit non-SCI lands* (e.g., expenses made to benefit irrigation of nearby historically irrigated lands).
  • *Note that in cases where the same expense(s) were made to benefit both SCI and non-SCI lands, ADWR will pro-rate the total expenses based on the acres of SCI land.
• Expenses for equipment not directly related to bringing new land into irrigation (e.g., equipment for harvesting/processing, or general farm labor/construction);
• Expenses for wells to serve existing/historic uses.
• Other expenses not directly related to bringing land into irrigation (e.g., coursework, household expenses, general business expenses, etc.).
• The purchase price of land.

All irrigable acreage is determined on a case-by-case basis, however areas such as roads, natural elements such as mountains and washes, easements, homes, and other developed land are considered “non-irrigable acres” and should be subtracted from the acres applied for.

No. ADWR will consider applications on a case-by-case basis, recognizing that investment required to bring land into irrigation scales with acreage, and depends on location, crop(s) to be grown, and many other factors.

ADWR will undertake due diligence in evaluating all SCI claims. Evidence of expenses incurred, including receipts, invoices, cancelled checks, etc., is strongly encouraged and allows ADWR to evaluate claimed expenses expeditiously. Estimated costs may be submitted if receipts, invoices, cancelled checks, etc. are not available, however ADWR may require additional evidence to support the claimed expenses.

Consistent with A.R.S. § 45-479, ADWR is required to post all submitted applications, including SCI attachments, to a public registry for a 180-day public objection period. Any person residing within the boundaries of the AMA is permitted to object to an application on the basis of incorrect or insufficient information in an application. Prior to posting applications to the public registry, personally identifiable information (PII) will be redacted. This information includes phone numbers, email addresses, credit card numbers, and bank routing and account numbers.

Yes. The Department reviews all available evidence submitted with an application and may find that all, some, or none of the claimed SCI acreage qualifies.

Yes. If an application file is incomplete – for example, if insufficient evidence has been submitted to back up claimed SCI expenses – ADWR will send the applicant a Request for Information (RFI) letter, with a detailed list of additional information needed to continue processing the application and instructions for how to submit the information by mail or email.