Global Water Resources Celebrates Newly Enacted 'Ag-to-Urban' Program as a Catalyst for Aquifer Sustainability and Potential Long-Term Growth
PHOENIX, July 16, 2025 (GLOBE NEWSWIRE) -- Global Water Resources, Inc. (NASDAQ:GWRS), a pure-play water resource management company, today recognized the recent passage of Arizona's Assured Water Supply "Ag-to-Urban" program as a transformative development for water sustainability, housing, and economic growth across the state.
The program allows landowners who cease agricultural operations to convert their water rights to the municipal sector for use in new development. By supporting the conversion of irrigated agricultural land—historically consuming an average of 3.8 acre-feet of water per acre annually in Phoenix Active Management Area (AMA) and 3.0 acre-feet in the Pinal AMA—into residential uses that require only a fraction of that volume, the program directly alleviates pressure on aquifers while enabling new development opportunities.
"We extend our sincere gratitude to Governor Katie Hobbs and Senator T.J. Shope (R-Coolidge) for their leadership in securing legislation that meaningfully advances water stewardship and regional resilience," said Ron Fleming, president and CEO of Global Water Resources.
The initiative is expected to significantly benefit the company's Global Water – Santa Cruz Water Company, Inc. (GW-Santa Cruz) and Global Water – Palo Verde Utilities Company, Inc. (GW-Palo Verde) utilities that provide water, wastewater and recycled water services in Pinal County, Arizona. These two utilities are the company's largest, collectively representing more than 56,000 active service connections in and around the City of Maricopa which represents approximately 87% of the company's total active service connections. In addition, this initiative is expected to also benefit the long-term sustainability of the state's aquifers including the aquifer beneath the City of Maricopa.
According to the Arizona Department of Water Resources, up to 384,000 acres of agricultural land in the Phoenix and Pinal AMAs are eligible for ag-to-urban conversion, representing an area with the potential to support over 1 million new homes. Designed to conserve substantial amounts of water, the program supports developer compliance within AMAs for a 100-year assured water supply requirement, helping bridge the gap between water availability and Arizona's need for housing. Irrigation for agriculture represents the largest use of water in Arizona, consuming about 74 percent of the available water supply.
"We believe this legislation creates a sustainable path forward, allowing for the reallocation of water in a way that benefits both the environment and our growing communities," said Jake Lenderking, SVP of Water Resources and Legislative Affairs at Global Water Resources. "It reflects a pragmatic approach to water management, economic development, and housing accessibility."
The company anticipates the Ag-to-Urban program will help advance its strategic focus on Total Water Management (TWM) across its service areas. The company further believes its regionally planned service areas can ultimately serve hundreds of thousands of additional potential service connections by continuing to apply its TWM stewardship practices, supported by its existing permitted water supplies and enhanced through the new benefits of Ag-to-Urban.
About Global Water Resources
Global Water Resources, Inc. is a leading water resource management company that owns and operates 39 systems which provide water, wastewater, and recycled water service. The company's service areas are located primarily in growth corridors around metropolitan Phoenix and Tucson. Global Water recycles over 1 billion gallons of water annually with 18.1 billion gallons recycled since 2004.
The company has been recognized for its highly effective implementation of Total Water Management (TWM). TWM is an integrated approach to managing the entire water cycle that involves owning and operating water, wastewater and recycled water utilities within the same geographic area in order to maximize the beneficial use of recycled water. It enables smart water management programs such as remote metering infrastructure and other advanced technologies, rate designs, and incentives that result in real conservation. TWM helps protect water supplies in water-scarce areas experiencing population growth.
Global Water has received numerous industry awards, including national recognition as a ‘Utility of the Future Today' for its superior water reuse practices by a national consortium of water and conservation organizations led by the Water Environment Federation (WEF). The company also received Cityworks' Excellence in Departmental Practice Award for demonstrating leadership and creativity in applying public asset management strategies to daily operations and long-term planning.
To learn more, visit www.gwresources.com.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release include certain forward-looking statements which reflect the company's expectations regarding future events. The forward-looking statements involve a number of assumptions, risks, uncertainties, and other factors that could cause actual results to differ materially from those contained in the forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning the Ag-to-Urban program, including anticipated benefits; expectations about prospective growth and opportunities, including the company's belief that its regionally planned service areas can ultimately serve hundreds of thousands of additional potential service connections by continuing to apply its TWM stewardship practices with its existing permitted water supplies; statements about the company's strategies; and other statements that are not historical facts, as well as statements identified by words such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates", or the negative of these terms, or other words of similar meaning. These statements are based on the company's current beliefs or expectations and are inherently subject to a number of risks, uncertainties, and assumptions, most of which are difficult to predict and many of which are beyond the company's control. Actual results may differ materially from these expectations due to changes in political, economic, business, market, regulatory, and other factors. Factors that may also affect future results are disclosed under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's filings with the Securities and Exchange Commission (the "SEC"), which are available at the SEC's website at www.sec.gov. This includes, but is not limited to, the company's most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings with the SEC. Accordingly, investors are cautioned not to place undue reliance on any forward-looking statements, which reflect management's views as of the date hereof. The company undertakes no obligation to publicly update any forward-looking statement, except as required by law, whether as a result of new information, future developments or otherwise.
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