Arizona's Water Shortages Threaten Economic Growth and Housing Prices.

Arizona has announced new limits to construction due to a shortfall in groundwater, which is changing the course of development. The state has some of the strictest groundwater rules in the country, and for decades, it has required new developments to show they have a 100-year supply of water before they can sell lots or break ground. The projected shortfall means that developers in Phoenix’s fast-growing outskirts can no longer get state approval to build new subdivisions that rely on groundwater wells, meaning they have to get water from somewhere else.