As the ongoing Colorado River megadrought continues to deplete key reservoirs like Lake Mead and Lake Powell, Arizona is taking action to secure its water future.

The state’s Water Infrastructure Finance Authority (WIFA) has launched a plan to import billions of gallons of water annually from abroad – a response to growing water supply challenges exacerbated by climate change and rising demand.

At the heart of this initiative is WIFA’s Long-Term Water Augmentation Fund, a program created to meet Arizona’s growing water needs. With a current fund balance of almost $450 million, WIFA is working to create innovative, sustainable water import projects.

The Colorado River, which supplies 36 percent of Arizona’s water, has been hit by more than two decades of drought. Lake Mead, a major reservoir in the Southwest, is only at 33 percent capacity, while Lake Powell is facing similar depletion.

The region is expected to become drier in the future, increasing uncertainty about Arizona’s future water allocations, particularly after 2026 when existing water-sharing agreements expire.

“Arizona has a long history of proactive planning for our water future,” said Chelsea McGuire, deputy director of external relations at WIFA Newsweek.

“We are also living in a time of significant uncertainty when it comes to some of our existing water sources, such as the Colorado River and groundwater. These factors became the focus of attention in 2022 when Arizona launched the Long-Term Water Augmentation Fund. The goal is to meet Arizona’s existing and future water needs.

In response to these growing concerns, Arizona is looking beyond its borders to improve its water supply.

The plan: Import over 100 billion gallons

Last week, WIFA held a pre-offer conference to clarify its water import goals and invite companies to propose solutions.

The conference, which included extensive discussions on bid logistics and submission protocols, was the first step in a three-step process aimed at making more water resources available to the state.

According to McGuire, the first phase is the tender, in which WIFA “identifies multiple project teams capable of developing all aspects of a water import project (WIP)”.

She said: “Qualified teams can be selected by WIFA to enter into a basic contract for the further development of their WIP.”

The second step involves paying for the services. Successful teams from the first phases are given the task of developing their WIP. Financial support will be provided and projects will be evaluated for “financial feasibility, environmental impact, social/political implications and more,” McGuire said.

The third and final phase is project development, where the remaining teams enter into pre-development agreements to implement their WIP.

None of this will be a quick affair. Phase 1 is scheduled to be completed in June 2025 and the timeline for Phase 2 remains uncertain.

McGuire said: “Although we won’t know the time frame for Phase II until we’re in, I’m talking years, which gives us enough time to gather all the information.”

The entire process can take between 5 and 15 years to implement, depending on the complexity of the project, environmental assessments and the availability of funding.

Arizona Drought Monitor: Why import water?

Arizona’s water demand is projected to increase significantly. Studies suggest an increase of 1.5 million acre-feet over the next 100 years. For comparison, an acrefoot is approximately 326,000 gallons.

According to the U.S. Drought Monitor, 90 percent of the state was unusually dry as of Dec. 10. More than 10 percent of Arizona is experiencing extreme or exceptional drought.

McGuire stressed that meeting Arizona’s water demand gap from sources outside its borders is “unrealistic” and that other strategies such as water recycling and mandatory water efficiency measures are needed.

Still, a WIFA needs analysis found that 100,000 to 500,000 acre-feet of imported water will be needed annually for the next 5 to 15 years. At the high end, that’s 163 billion gallons the state must procure from outside sources each year — 6 percent of all the water currently stored in Lake Powell.

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