CAWCD approves $179 million federal funding pact for Phoenix advanced water purification facility

CAWCD approves $179 million federal funding pact for Phoenix advanced water purification facilityThe Central Arizona Project board has authorized a long-term agreement securing $179 million from the Bureau of Reclamation to fund an 8 MGD advanced water purification facility in Phoenix, part of a broader push to conserve Colorado River water.

The City of Phoenix will design and construct the facility to treat effluent and generate potable water, committing to conserve 150,000 acre-feet of water over 25 years.

The board also approved extensions to short-term conservation agreements with several municipalities for 2027 and 2028 at a reduced federal payout of $325 per acre-foot.

CAWCD General Manager Brenda Burman noted that certain provisions within the federal agreements are still being actively negotiated to reach full consensus with Lower Basin partners.

The Central Arizona Water Conservation District (CAWCD) board of directors voted on July 16, 2026, to advance a major infrastructure funding pact, approving a System Conservation Implementation Agreement that will provide the City of Phoenix with up to $179 million from the Bureau of Reclamation. The funds will be used to design and construct an advanced water purification facility capable of treating approximately 8 million gallons per day of effluent to generate potable water. The project falls under "Bucket 2" of the Lower Colorado River System Conservation and Efficiency Program, which targets long-term system efficiency improvements. In exchange for the federal investment, Phoenix will reduce its Central Arizona Project (CAP) water deliveries by 150,000 acre-feet over a 25-year period. This commitment will leave approximately 6,000 acre-feet of water per year in Lake Mead starting in 2026. CAWCD Senior Attorney Greg Adams explained that Phoenix must submit annual water orders reflecting the conserved volumes. "If Phoenix doesn't complete the project or is otherwise unable to conserve the total 150,000 acre-feet, it would be required to reimburse the United States for water that is not conserved," Adams said. Alongside the Phoenix project, the board approved extensions to several "Bucket 1A" short-term system conservation agreements for 2027 and 2028. Participating municipal and industrial users include the cities of Tucson, Glendale, and Mesa, as well as the Metropolitan Domestic Water Improvement District, Spanish Trail Water Company, and ASARCO LLC. Under the extended agreements, the federal payout for conserved water will decrease. While previous conservation efforts were compensated at $400 per acre-foot, the United States will pay $325 per acre-foot for the 2027 and 2028 delivery years. While the board authorized both sets of agreements, CAWCD General Manager Brenda Burman cautioned that the district is still actively negotiating certain provisions with the federal government. "As negotiations have unfolded on the Lower Basin System Conservation Agreements, there remain provisions that lack full consensus," Burman told the board. She noted that representatives for the State of Arizona, along with partners in California and Nevada, have raised concerns regarding specific terms proposed by the United States. The board's approval allows Burman and the general counsel to execute the agreements once those outstanding terms are finalized, provided the price and quantity of the conservation commitments remain unchanged.