Colorado River cuts to drive up Arizona water prices as cities invest in infrastructure
Steve NielsenPHOENIX -
Water experts state that no matter what happens with cuts along the Colorado River, water will start getting more expensive.
There are many reasons for that, with much on the line as federal officials announce Colorado River water cuts.
Big picture view:
In Apache Junction, local officials rely entirely on the river for their water supply.
While residents will still have water, many water solutions require infrastructure, which requires funding. Inside a city office building, a team of people, including Apache Junction Deputy Water Director Brian Draper, is working on finding water. Securing water is a necessity for Draper because Apache Junction is entirely dependent on Colorado River water.
"We can absorb some of that," Draper said. "Should we have maxed out due to demand in the next couple years, we do have groundwater supplies we don’t use right now. We also have a bank of long-term storage credits we’ve stored underground that we can recover."
Local perspective:
Apache Junction is not the only municipality in Maricopa County heavily reliant on river water. Kathryn Sorensen, with the Kyle Center for Water Policy at Arizona State University, explained that residents should not expect problems at the tap.
"Residents should not be concerned about tap water shortages," Sorensen said. "But yes, their price of water is going to go up their cities, especially those more reliant on Colorado River water are going to need to invest in more infrastructure and that infrastructure is really expensive."
Infrastructure projects include a water treatment facility in Apache Junction being expanded from 4 million gallons a day to 10 million gallons a day. Officials also have plans to pilot advanced water purification that can turn wastewater into drinking water.
"The more of that we can treat once we get permitted by DEQ and we're able to out that into the system, we can augment a considerable amount of water and lower our reliance on Colorado River water," Draper said.
What's next:
Although cuts are coming for cities dependent on the river, local officials say they have solutions.
"We’re open for business. We’re welcoming new development and business to come in with the understanding they need to be cognitive of the amount of water they’re going to be using," Draper said.
Apache Junction is a fast-growing city with significant development. Officials work to ensure that development is water-smart amid uncertainty ahead.
The Source: Information in this report was gathered from Apache Junction Deputy Water Director Brian Draper and Kathryn Sorensen of the Kyle Center for Water Policy at Arizona State University.
My Thoughts 💭
Will Arizona run out of water? If economics are able to work I don’t think so. These articles don’t go into heavy detail on how much every users pay per gallon. A per capita basis usage doesn’t compare to agriculture, commercial, and industrial. Will be interesting to see how this plays out over the next 10-20 years.
The perverse part of Western water economics: allocations follow seniority rights, not need. So junior water users (in practice much of the farm sector downstream) absorb most of the volume cut, while municipalities feel only the higher pass-through price — the delta evaporates before anyone re-prices the river itself. The thing I'd watch: whether Arizona treats this as a one-time squeeze or uses it to finally push reuse/desal imports as budget lines.
Water rights are a mess in the western states. I know a few people who have worked in that field.
My sense is that there's an unproductive combination of misguided/naive political sentiments amongst both the public and environmental economists, as well as powerful local special interest groups. A lot of people think of water as a human right, rather than a commodity that must be produced and allocated. Even the economists who work on the problem are prone to viewing market mechanisms unfavorably.
There are also legitimate disagreements about what the property rights framework should be and CA has created a Byzantine mess trying to blend the two competing models.
This is so true so many people think water should be free. When the west isn’t in a drought a lot of these agreements as unproductive and short sighted as they were worked because water was plentiful. But if this trend continues the west can have real economic struggles due to lack of sound water management.
If water gets expensive enough, people and businesses have a pretty strong incentive to use less and invest in alternatives before shortages become the norm.