- SB 1611 moves forward in the Senate, proposing farmland-to-housing conversions.
- Supporters say it will lower home prices while conserving water.
- Critics recall last year’s veto and await Governor Hobbs’ decision.
- Housing and water experts debate long-term impacts on resources.
February 20, 2025 — A bill that could reshape Arizona’s housing and water use is moving through the state legislature. Senate Bill 1611, also known as the “Ag-to-Urban” bill, passed out of the Senate Committee on Natural Resources, Energy & Water (NREW) on February 18, 2025. The proposal, sponsored by NREW Chairman T.J. Shope, seeks to allow farmers to sell their land and water rights to developers to increase housing supply while reducing water consumption.
With Arizona experiencing both rising home prices and concerns over groundwater sustainability, SB 1611 is presented as a dual-solution approach. “The solutions proposed in this bill have been heavily vetted over the past 14 months,” Shope stated
. He cited stakeholder meetings with over 80 participants, including water experts, housing developers, and lawmakers. Shope also called on Governor Katie Hobbs to reconsider her previous stance, after vetoing a similar measure last year. “I’m hopeful she will see light and take the right action this time around,” he said.
Addressing Housing Shortages and Water Use.
Supporters of the bill argue that single-family housing developments use less water than agriculture. According to state data, Arizona uses the same amount of water today with a population of 7.5 million as it did in 1957 when only 1.5 million people lived in the state. At the same time, housing demand continues to surge, with an estimated shortage of 270,000 units statewide. Over the past five years, median home prices have risen more than 50%, reaching approximately $450,000.
Mike Cowley, President of Cowley Companies, expressed support for SB 1611, pointing to restrictions that currently limit new housing projects. “We have housing projects in the Valley that are ready to be built on existing agricultural lands, but we cannot because of the moratorium the Department of Water Resources has placed on the issuance of new certificates of assured water supply,” Cowley said. He emphasized that housing requires less water than farming and that the bill “creates a responsible pathway for the development of much-needed housing while protecting our groundwater aquifers.”
If enacted, the bill could impact approximately 400,000 acres of irrigated farmland in key regions such as Phoenix, Pinal, and Tucson. Proponents estimate that if even half of this farmland were converted to housing, it could result in the construction of over a million new homes.
Awaiting the Next Steps.
The bill’s passage through committee marks a significant step forward, but it still faces further legislative hurdles. Governor Hobbs’ position remains uncertain following her previous veto of similar legislation. As Arizona continues to grapple with housing affordability and water conservation, SB 1611 sparks an ongoing debate about balancing economic growth with sustainable resource management.
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