Arizona bill caps water rates for towns sharing supply

Municipal corporations; water supply; rates

Engrossed· 2026-02-23

Who's it for

Who's it for: Everyday People

What it means for you

7/10Helps you

Good for everyday people ·

Right removedCost shift

Plain‑English summary, cross‑checked against the official bill text.

If passed, towns that sell water to other towns must charge the same or lower rates than they charge their own residents.

Our take

What we think, in plain words.

Consumers could pay less for water, while cities may lose revenue and could need higher taxes or cut services.

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The facts

What the bill actually says, no spin.

Municipalities must charge water rates to other municipalities that are no higher than rates charged to their own residents.
Rates can also be based on the other municipality's resident rates, average private rates, or a contract approved by both municipalities with a cost study.
Surcharges adopted before July 1, 1986 can remain if they do not exceed 30% of the resident rate, and any increase after Aug 13, 1986 must follow the new rules.
Municipalities in counties with 1‑4 million people cannot charge higher rates to out‑of‑boundary residents than to inside residents.