Water Supply Development Revolving Fund

The Water Supply Development Fund (WSDF) was established in 2007 with HB 2692 and aimed to help areas of Arizona lacking access to sufficient water supplies and in need of financial assistance to construct projects necessary to obtain additional water supplies.

In 2021, through SB1823, the Arizona Legislature allocated $40 million to the WSDRF (press release), opening more financial opportunities for Arizona’s rural water providers to improve their water infrastructure projects. 



WSDRF Eligibility criteria

  • Eligible borrowers

    To be eligible for Water Supply Development Fund (WSDF), your entity must be a water provider with an eligible project.
    Water provider is defined as:
    • A municipal water delivery system
    • a county water augmentation authority
    • a county water authority
    • an Indian tribe
    • a community facilities district
    • a public water system
    • a county with a population of less than 300,000 persons
    • a natural resources conservation district
    • a county that enters into an intergovernmental agreement (IGA) or other formal agreement with a city, town, or other provider regarding the WSDF project
    • Additionally, one of the following must be met  to receive WSDF monies. 
    • the board of supervisors in which the water provider has adopted the provision authorized by A.R.S. § 11-823, subsection A.
    • The water provider is located in a city or town and the legislative body of the city or town has enacted the ordinance authorized by A.R.S. § 9-463.01, subsection O.
    • The water provider is located in an Active Management Area (AMA)
    • The water provider is located outside of an AMA and one of the following applies:
      • The water provider has a designation of adequate water supply
      • The water provider will use the financial assistance for a water supply development project and the director of water resources has determined that there is an adequate water supply for all subdivided land that will be served by the project and for which a public report was issued after July 24, 2014.
    • The water provider is located in a county with a population of less than one million five hundred thousand persons.
    • The water provider is an Indian tribe.

  • Eligible projects and expenses

    Eligible WSDF projects are projects that fit the following categories:

    Acquiring water or rights to or contracts for water to augment the water supply of a water provider, including any environmental or other reviews, permits or plans reasonably necessary for that acquisition.

    • Planning, designing, building or developing facilities, including any environmental or other reviews, permits or plans reasonably necessary for those facilities, for any of the following purposes:
    • Conveyance, storage or recovery of water.
    • Reclamation and reuse of water.
    • Replenishment of groundwater.
    • active or passive stormwater recharge structures that increase water supplies.
    • Conducting water supply studies

  • Unsure of your eligibility?

    We have staff available during normal business hours to answer these questions. If you would like to speak with someone, please contact us at (602) 364-1310 and we will be happy to help. Staff are available Monday - Friday, 8:00 AM - 5:00 PM.