The Reality of Water in Arizona!

At the 2026 AZRE Forum at The Camby in Phoenix, Anita Verma Lallian, founder and CEO of Arizona Land Consulting, delivered a clear message to Arizona’s real estate leaders: the rules of development in our state have changed.

For decades, land development was driven by location, price and timing. Today, those factors are still important, but they are no longer the only deciding factors. Infrastructure is now front and center.

“It’s no longer just about finding the right land,” Verma Lallian told the audience. “Now we’re asking: Where’s the power coming from? Is there long term water? And can we get those resources fast enough and at a cost that makes the project viable?”

That message carried through two major panel discussions focused on energy and water, two issues that will shape Arizona’s future growth.

5 takeaways from the energy panel

The energy panel featured Bill Jabjiniak as moderator, along with Jordan Rose, David Bean, Mark Bauer, Sam Jones and Suzanne Fallender.

1. Power is now one of the biggest drivers of growth

Across Arizona, the first question in many real estate deals is no longer just about location. It is now, “Do we have power?”

Panelists made it clear that access to reliable power is helping determine where projects can happen. Large users like TSMC and data centers are creating major demand, but they are not the only ones putting pressure on the system.

2. Demand is coming from all types of businesses

While major semiconductor and data center projects get most of the attention, smaller industrial users are also using more power than ever before.

Manufacturing, logistics, automation and other business operations all require significant energy. As Arizona continues to grow, that demand will only increase.

3. The challenge is bigger than simply generating power

Even when power is available, getting it where it needs to go can be complicated. Transmission lines, permitting, equipment delays and approval timelines can all slow down a project.

This makes development timelines harder to predict and adds more risk for builders, investors and communities.

4. Developers now need to think like energy partners

Developers can no longer rely only on utilities to solve every power challenge. The most successful projects will likely be the ones that plan early, coordinate with utilities and explore creative energy solutions.

That may include on site power generation, energy storage, hybrid energy systems and smarter long term planning.

5. Arizona’s competitive edge depends on solving power challenges quickly

Arizona is competing with other states for major employers, jobs and investment. If the state can secure and deliver power efficiently, it will continue to have a strong advantage.

If it cannot, growth could slow.

5 takeaways from the water panel

The water panel featured Michelle De Blasi as moderator, along with Brad Tackett, Lucas Shaw, Rocky Anderson, Shawn Bradford and Maryella Begley Garmon.

1. Arizona’s water story is stronger than many people think

Panelists pushed back on the idea that Arizona is simply running out of water. They emphasized that the state has spent decades planning, conserving and investing in water infrastructure.

That planning has helped Arizona support major population and economic growth.

2. Long term planning has always been key

Arizona’s water success did not happen by accident. Major infrastructure projects, including Roosevelt Dam and the CAP canal, helped prepare the state for growth.

The next phase will require the same kind of forward thinking. The investments made today will impact what Arizona can support tomorrow.

3. Conservation and reuse are already making a difference

Arizona has grown dramatically, yet the state has found ways to use water more efficiently. Conservation, changes in agriculture, recycling and recharge efforts have all helped reshape the system.

More projects are now being designed with water efficiency and reuse built in from the beginning.

4. Advanced water reuse is part of the future

Highly purified recycled water is expected to play a larger role in Arizona’s future water supply.

The technology is already strong. The bigger challenge may be helping the public understand and accept how safe and valuable this water source can be.

5. There is no single solution

Arizona’s water future will depend on many solutions working together. That includes conservation, reuse, stormwater capture, groundwater management, new infrastructure and possibly water exchanges or imports.

There is no single fix. Arizona will need a layered approach.

What Arizonans can do to help

Arizona’s future is not only up to developers, cities and utility companies. Residents can also play an important role.

Here are a few practical ways Arizonans can help:

1. Use water wisely at home

Small changes add up. Fix leaks quickly, use water efficient fixtures, adjust irrigation systems and consider low water landscaping that fits Arizona’s climate.

2. Support responsible growth

Pay attention to local development discussions. Ask how new projects plan to address water, power, traffic and infrastructure needs before they are approved.

3. Learn more about water reuse

Public understanding will matter as advanced water reuse becomes more common. Take time to learn how recycled water is treated, tested and used safely.

4. Reduce energy waste

Simple steps like using smart thermostats, upgrading to efficient appliances, sealing windows and improving insulation can help reduce pressure on the power grid.

5. Participate in local decisions

City councils, planning commissions and water boards make decisions that shape Arizona’s future. Attend meetings, submit comments and vote in local elections.

6. Support infrastructure investment

Arizona’s growth depends on smart investments in power, water and transportation. Supporting long term infrastructure planning helps protect the quality of life that attracts people and businesses to the state.

The bottom line

Arizona is still a place of tremendous opportunity, but growth now comes with new questions.

Where will the power come from? How will water be managed? Can infrastructure keep up with demand?

The answers to those questions will determine how Arizona grows in the years ahead. With smart planning, public support and continued investment, the state can continue to attract jobs, businesses and families while protecting the resources that make that growth possible.

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