With the expectation that the Town of Cave Creek will experience a reduction in Colorado River water deliveries from Central Arizona Project (CAP) starting in 2027, Town staff have been working to secure water solutions to meet the current and future needs of water customers. The most current planning projection indicates a 25% reduction, although this percentage may be higher due to uncertainty.
At the October 21, 2025, Town Council meeting, the Council voted to authorize the Town Manager to execute a purchase agreement that enables the Town to purchase a one-acre parcel with groundwater rights from Harquahala Valley Landowners, LLC. The Arizona Department of Water Resources (ADWR) has completed a review of modeling that shows the Harquahala groundwater basin has over 80,000 AF/yr of groundwater available for 100 years. To date, Buckeye, Queen Creek, and the Arizona State Land Department have entered into agreements with Harquahala Valley Landowners, LLC.
“We only have three years of water reserves from banked water supplies after CAP reduces our allocation due to extended drought conditions along the Colorado River,” said Mayor Robert Morris. “This is the only viable option to fulfill the needs of our town and continue to serve current customers. We need to protect our property values and keep water rates as affordable as possible.”
The agreement to purchase the land will give the Town rights for 500 AF/yr for 100 years. By executing the agreement, the Town will pay Harquahala Valley Landowners, LLC. $11,250,000, due on February 15, 2026. The ongoing costs to withdraw, treat and convey the groundwater to the CAP Canal will be built into future annual budget requests.
According to a recent press release from Governor Katie Hobbs, ADWR finalized a Transportation Order approving the importation of groundwater from the Harquahala Groundwater Basin. This first-ever transportation approval creates a new water source opportunity that will add to Arizona’s diverse and robust water portfolio. “This approval unlocks another water supply that Arizona can use to support our communities, economy, and way of life. We will continue to develop creative solutions and new water supplies as we fight to protect our Colorado River water and the aquifers that Arizonans rely on,” said Governor Hobbs.