County water augmentation authorities may now issue revenue bonds for a wider range of water projects, including buying water rights, and borrow from the state Water Infrastructure Finance Authority, under new rules for bond hearings, attorney general review, lawsuit deadlines and collecting repayment from end users.
Official title: county water augmentation authorities; bond
- September 12, 2026
What changes
BeforeA "project" meant a facility to obtain, divert, withdraw, transport, exchange, deliver, treat or recharge water, plus related property.
NowA "project" also covers facilities to conserve or store water (such as canals, pipelines, pumping stations, recovery wells and water and wastewater treatment plants), buying water and water rights, and loans of bond proceeds to an operating unit to build or acquire such facilities.
BeforeA bond resolution had to state that all other financing methods were impractical, inadvisable or inadequate. The hearing was set 20 to 30 days after the resolution was adopted, notice was published twice, and certain bidders and operating units could qualify to be heard.
NowThe resolution no longer needs that statement. The hearing is held before the resolution is adopted, with notice in a county newspaper at least 20 days ahead. The section listing who may qualify to be heard is removed.
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NowThe board must notify the attorney general before issuing bonds. If the attorney general issues an opinion within 10 days that the bonds do not comply, the board may not issue them. No one may bring a lawsuit challenging the legality of the bonds or related contracts or proceedings starting 30 calendar days after the board is authorized to issue bonds.
BeforeBonds had to state they were not a debt of the state, its political subdivisions or any operating unit and were payable only from authority revenues. Bond fund monies were to be invested in U.S. or state bonds.
NowThe board may pledge monies, set up reserves and give bondholders a first lien. Bonds and their income are exempt from state and local taxes and are not obligations of the state, the county or other political subdivisions. Bond fund monies are invested as provided in state public finance law (title 35, chapter 2).
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NowEach operating unit that owns, operates or benefits from bond-financed projects must collect from each end user who benefits a share of the required revenue that matches that user's share of the benefits. The authority may also borrow from or get help from the Water Infrastructure Finance Authority of Arizona for wastewater, drinking water and nonpoint source projects.
Who it affects
- End users of water from operating units that benefit from authority bond-financed projects
- Bondholders and bond buyers
- County water augmentation authorities and their boards
- Operating units such as cities, towns, water companies and other entities under contract with an authority
- Arizona Attorney General
- Water Infrastructure Finance Authority of Arizona
What you need to do
Nothing.
What the law doesn't answer
- Which counties currently have a county water augmentation authority
- How much end users may be charged or how benefits will be divided among them
- What the repealed earlier versions of the bond authority and attorney general sections said
- Any limit on the total amount of bonds an authority may issue
- Which specific investments are allowed under title 35, chapter 2
This summary describes the law as enacted. Later laws, court rulings or referendum petitions can change the picture. Check the official text for the current wording.