water; residential lease communities

HB 2722 requires new residential lease communities (defined as six or more detached homes offered under a common promotional plan) in Arizona’s designated water management areas to prove water availability before building permits are approved. Applicants must provide either a state-issued certificate of assured water supply or a written commitment from a city, town, or private water provider, plus pay specific fees. Existing communities that applied for zoning entitlements before September 30, 2026, are exempt. The law applies to all municipalities and counties, ensuring new developments have confirmed water resources before construction begins.