Arizona Implements Construction Limits in Response to Dwindling Groundwater Supply in Phoenix.

Arizona has announced restrictions on new housing construction in the Phoenix area that depends on groundwater due to a multi-decade drought and diminishing water supplies. The decision would allow developers to continue building in the affected areas but would require them to find alternatives to groundwater supplies. The state's restriction could prompt developers to seek out other water sources, such as purchasing access to river water from farmers. Arizona has endured two rounds of mandatory water cuts from the Colorado River over the past two years.