Achieving water policy objectives through water pricing: A case study of Arizona’s decentralized approach to water provision

Water regulation in the United States is complex and decentralized. Except for federally established drinking water quality standards and certain discharge regulations, most regulation of water quantity and quality is performed at the state level. In Arizona, the rights to use surface water, groundwater and recycled or reclaimed water are based on state law. There is often the misconception that because there are large federally built systems to deliver raw or untreated water, such as the Central Arizona Project and the Salt River Project, that Arizona’s water provision and regulation are centralized. This is not the case.