Some Phoenix-area cities and private utilities could conserve additional water and, in return, gain access to reserves stored underground by the Arizona Water Banking Authority (AWBA). The Central Arizona Project (CAP) presented the idea in October 2026 as a proposal—not a finalized allocation, guaranteed replacement for river water, or program residents can join.
What the “water savings account” means
The account is a metaphor: the Arizona Water Banking Authority stores water underground, including excess Colorado River water that CAP users banked for possible shortage periods. It is not a cash account, household benefit, or payment to cities. The proposed exchange would let some Phoenix-area cities and private utilities contribute additional voluntary conservation in return for access to AWBA-held water. KJZZ’s October 2026 report describes the concept as still under discussion.
CAP senior attorney Greg Adams presented tentative maximum savings of 12,308 acre-feet in 2026 and 56,179 acre-feet in 2027. These are meeting estimates, not confirmed final savings or allocations. An acre-foot measures volume; KJZZ offers the rough comparison that one acre-foot could supply about three Phoenix-area homes for a year. That is a local illustration, not a universal household conversion.
How the proposal differs from mandatory shortage cuts
| Arrangement | What it addresses | What a city or utility would receive |
|---|---|---|
| Mandatory-shortage firming | Water reductions imposed under shortage conditions | AWBA had agreed to make utilities whole for one year of mandatory reductions, according to KJZZ’s October 2026 report. |
| Proposed conservation-for-access plan | Additional, voluntary conservation beyond mandatory reductions | Potential access to AWBA-stored water; final rules, participants and allocation formula have not been confirmed. |
The proposed voluntary arrangement is separate from mandatory shortage firming. It does not settle the larger dispute over what cities can withdraw, establish one-for-one replacement, or guarantee that every city receives water. City representatives have sought clarity about withdrawals while Water Bank officials weigh preserving supplies for the longer term. In July 2026, AWBA commissioner Eric Braun told KJZZ, “The water bank is not a three-year water bank. It’s forever.”
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How large is the proposal compared with broader conservation goals?
Adams said Arizona was aiming to contribute 300,000 acre-feet of conservation through 2028. That statewide aim is distinct from the tentative savings associated with the city strategy. The Lower Basin states’ May 2026 proposal described at least 700,000 acre-feet of system conservation through 2028, with a target of up to 1 million acre-feet. Arizona’s Department of Water Resources describes that broader proposal in its May 2026 announcement. The figures refer to different scopes and should not be treated as interchangeable.
KJZZ reported the proposed city strategy would be one part of wider conservation efforts, which also include programs that pay water users to reduce consumption and conservation by western Arizona users. CAP senior attorney Greg Adams characterized the tentative city contribution’s scale this way: “We’re looking at the couch cushions here.” Arizona Department of Water Resources director Tom Buschatzke said of collaborative conservation, “We have shown that collaborative, voluntary efforts and reductions that are certain can produce meaningful water savings.”
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Why cities care about access to stored water
Cities banked water with the expectation that they could use it during Colorado River shortages. The policy question is how much each can recover, and under what rules, while the AWBA also considers the long-term value of retaining reserves. The proposed exchange could add an incentive for conservation, but it does not answer the broader withdrawal questions.
City exposure also depends on water portfolios, not simply proximity to the Colorado River. Mesa’s current water page lists its sources as 53% Colorado River, 40% Salt and Verde rivers, and 7% groundwater. The city says the precise impact of federal reductions depends on hydrology and how Arizona implements reductions; a federal decision does not automatically impose new customer restrictions in Mesa. Its current status is Stage One – Water Watch, with voluntary conservation recommended. Mesa’s water supply page also says the city has stored more than 555,000 acre-feet underground, while noting that stored water is finite. Mesa’s long-term portfolio includes river water, groundwater, reclaimed-water exchanges, stored water, conservation and infrastructure investments.
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Phoenix reports a different mix: approximately 40% Colorado River, 58% Salt and Verde rivers, and 2% groundwater. In its July 2026 update, the city said potential reductions could lead it to draw on stored reserves, expand conservation and invest in future supplies. Phoenix remained in Stage 1 of its drought plan at that time and had not imposed new mandatory customer restrictions. See the City of Phoenix’s July 2026 update for its dated account of those plans and conditions.
Storage, reuse and conservation are different pieces of the response
Underground reserves can help cities manage reductions, but they are finite. Conservation can reduce demand, and reuse or infrastructure projects can diversify supplies; none alone permanently replaces Colorado River water. Mesa is helping fund a Phoenix-led regional study of an advanced water purification facility at the 91st Avenue wastewater treatment plant. Mesa’s water resource director said piping purified water from Phoenix would be expensive and complicated, and the city was in preliminary discussions about a possible exchange in which Phoenix uses purified water while Mesa receives Salt and Verde supplies. The project remains years away, with details unresolved. Mesa’s advanced water purification page provides city information on the effort. Mesa water resource director Joe Giudice put the local challenge plainly: “We live in a desert, so adapt a desert lifestyle.”
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What residents can do—and what the proposal does not offer
The AWBA proposal is for potential city and utility participation, not a household water account or a direct consumer rebate. Residents can check their municipality’s conservation programs, but eligibility and terms are city-specific and may change.
- Mesa lists an irrigation equipment incentive of up to $20,000 per property for eligible efficient equipment, including smart controllers, high-efficiency nozzles and flow sensors. Its grass-replacement program offers homeowners up to $2,100 for replacing at least 500 square feet with desert-friendly landscaping; commercial properties have a separate program. Check Mesa’s current rebates and incentives page for requirements.
- Phoenix lists grass-removal rebates, free in-home consultations and a free AZ Water-Wise Kit. Axios reported a $75 Phoenix payment for eligible low-flow toilets and smart irrigation controllers; confirm current eligibility and terms with the city before buying. See Phoenix’s residential conservation page.
A smart irrigation controller may help manage outdoor watering, but not every model necessarily qualifies for a municipal rebate. Verify the specific product and program rules with your city before purchase. Mesa’s deputy director of Environmental and Sustainability, Lauren Whittaker, said, “In our desert environment, we all have a role to play in using water wisely.”
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