Prescott Valley moves to unwind water rule for non-subdivision housing
Town of Prescott Valley, Arizona · Meeting date: October 22, 2026 · Published: October 23, 2026
Prescott Valley Town Council has advanced repeal of a 2024 ordinance that required non-subdivision residential developments to secure renewable or imported water supplies before receiving town approvals. The move follows a challenge from the Goldwater Institute, despite public calls for the town to defend the measure as a groundwater-protection tool.
Key points
- The 2024 ordinance required non-subdivision residential developments to obtain renewable-water commitments, including effluent interests or extinguishment credits, or imported supplies.
- The Goldwater Institute argued that the rule conflicted with Arizona's Groundwater Management Act and that the town lacked authority to impose it, raising the prospect of litigation.
- Council approved the first-reading process for Ordinance 2026-988, which would repeal the policy; a second reading and final vote are scheduled for November 12.
- Town officials said they would pursue a legislative solution for the Prescott Active Management Area rather than defend the local ordinance in potentially costly litigation.
Full report
Prescott Valley Town Council has taken the first formal step toward eliminating a locally imposed water-supply condition for non-subdivision residential projects, choosing to pursue a state legislative remedy rather than defend the rule against a threatened legal challenge.
The council voted on October 22 to begin the two-reading process for Ordinance 2026-988, which would repeal Ordinance 2023-930. The latter was adopted in January 2024 to close a perceived gap between subdivision and non-subdivision housing development in the Prescott Active Management Area.
Under the 2024 ordinance, non-subdivision residential developments were required to obtain commitments for renewable water supplies, such as effluent interests or available extinguishment credits, or imported water supplies before receiving town approvals. Subdivisions in the AMA must obtain Certificates of Assured Water Supply from the Arizona Department of Water Resources, but the town said comparable non-subdivision projects were not subject to that state process.
The policy was intended to preserve the town's remaining Assured Water Supply Program allocation buffer for commercial, retail, industrial and governmental uses. Town Attorney Ivan Legler told the council that the town had adopted the measure despite there being no Arizona statute or rule expressly authorising the requirement, believing it could argue the condition fell within municipal authority.
That position was challenged by the Goldwater Institute, which told the town that the ordinance conflicted with the Arizona Groundwater Management Act and asked it to rescind the measure or face litigation by affected property owners. The staff report also cited potential claims under Proposition 207 or Senate Bill 1487.
Legler recommended repeal, saying that while he would be willing to defend the ordinance, litigation could consume substantial town time and resources. He said the town should instead seek legislation to address the issue in the Prescott AMA and statewide.
The proposal drew public opposition. Speakers described the ordinance as a necessary protection against development proceeding without demonstrated water supplies and urged the council not to let developers pressure the town into abandoning the rule. Councilmembers also voiced support for maintaining the protection, arguing that water supply is central to the town's future.
Mayor Kell Palguta said the town was not abandoning its water-management objectives. Town Manager Gilbert Davidson said a legislator was prepared to introduce a bill and that Prescott Valley would work with municipal partners to push the issue at the state level.
The council's October 22 action authorised the ordinance's first reading; it did not complete the repeal. The second reading and a final vote are scheduled for November 12. If adopted, the repeal would take effect 30 days later.
This summary was generated by AI based on the source document and may contain errors.
Source: Town Council Regular Meeting, Town of Prescott Valley