State’s leading business group urges negotiators to find fair deal on Colorado River

As negotiations over the future of the Colorado River intensify and deadlines draw nearer, Arizona’s leading business organization is urging state leaders to hold firm for a fair, durable agreement that does not place a disproportionate burden on Arizona’s economy.

Arizona Chamber of Commerce & Industry President and CEO Danny Seiden warned that current federal proposals would force Arizona to shoulder more than its fair share of water reductions once existing operating guidelines expire in 2026.

“As federal officials consider new rules for managing the Colorado River after 2026, Arizona is being asked to shoulder more than its fair share of the cuts,” Seiden said. “That is not acceptable, and we need our state’s leaders across both political parties to step up and aggressively push back.”

The Chamber is speaking out as the seven Colorado River Basin states work toward a new long-term framework governing water use amid a decades-long megadrought. The Arizona business community is argues that the Upper Basin must commit to enforceable reductions to stabilize the river system.

Business community raises alarm over federal proposals

At the center of the dispute is the U.S. Bureau of Reclamation’s Draft Environmental Impact Statement, which Arizona officials and business leaders argue places disproportionate risk on the Lower Basin.

Seiden said every alternative currently on the table shifts unequal responsibility to Arizona, with particularly severe consequences for the Central Arizona Project — a critical water supply for cities, agriculture, and industry — while allowing Upper Basin states to continue increasing water use.

“The ‘no deal’ option would devastate Arizona and the Central Arizona Project while leaving Upper Basin supplies untouched,” Seiden said. “Arizona has spent decades investing in conservation, infrastructure, and smarter water management. We are willing to do our part, but we will not accept a federal approach that forces Arizona communities, tribal water users, and nationally critical industries to absorb unequal impacts so others can avoid shared responsibility.”

Hobbs: progress, but no deal by Feb. 14

Governor Katie Hobbs has acknowledged that a comprehensive agreement is unlikely by the federal government’s Feb. 14 deadline, though she says recent talks mark meaningful progress.

Following an unprecedented meeting of all seven basin governors in Washington, D.C. last week, Hobbs said she sensed increased willingness from Upper Basin states to discuss firm commitments to water conservation — a shift Arizona officials have long sought.

“Arizona and the Lower Basin cannot and will not be balancing the Colorado River on our own,” Hobbs was quoted by Axios, noting that Lower Basin states have already agreed to take the first 1.5 million acre-feet of annual cuts, representing roughly 27% of Arizona’s Colorado River supply.

Hobbs emphasized that Arizona will not go beyond that threshold absent mandatory, enforceable reductions by Upper Basin states.

Conservation record strengthens Arizona’s case

Arizona Department of Water Resources Director Tom Buschatzke reinforced that message in recent testimony before the Arizona House Natural Resources, Energy & Water Committee.

Buschatzke highlighted that since 2007, the Lower Basin has conserved nearly 9 million acre-feet of water in Lake Mead, including more than 4.2 million acre-feet by Arizona alone, actions he said prevented the reservoir from reaching “deadpool” levels years ago.

“Arizona has done the heavy lifting,” Buschatzke told lawmakers, adding that Upper Basin states have consistently resisted enforceable conservation requirements.

Any final agreement, he noted, must stabilize Lake Mead, require meaningful use of upstream reservoirs, and include real water-use reductions in the Upper Basin. The agreement will ultimately require approval from the Arizona Legislature, a safeguard unique among basin states.

Chamber calls for shared accountability, state House prepares for litigation

For Arizona’s business community, the stakes extend well beyond water policy.

Arizona Chamber CEO Seiden says that water security underpins Arizona’s ability to support advanced manufacturing, agriculture, tribal communities, and a rapidly growing economy critical to national supply chains.

“The best outcome remains a fair, durable seven-state agreement that reflects shared risk and shared accountability,” Seiden said. “If that does not happen, and Arizona continues to be singled out under a federal path forward, the business community is prepared to defend Arizona’s legal rights and pursue every available option to protect our economy and water security.”

At a legislative level, the Arizona House of Representatives on Tuesday unanimously passed H.B. 2116, bipartisan legislation sponsored by Rep. Gail Griffin (R-Hereford) to strengthen Arizona’s legal defense fund in the event of litigation over Colorado River water.

The bill appropriates $1 million in fiscal year 2027 to the Colorado River Litigation Fund, which was created in 2025 to be used solely by the Arizona Department of Water Resources to take legal action, if necessary, to protect and defend Arizona’s lawful entitlement to Colorado River water.

“Arizona does not get to wish its way out of a water fight,” Griffin said. “Other states have been positioning themselves for court long before this fund was created. Hopefully, the fund will not be needed, but if it is—this bill makes sure that Arizona is ready to defend the water that millions of people and billions of dollars of economic activity, depend on. Waiting until a lawsuit is filed to start planning would be reckless. HB 2116 puts Arizona on offense, not defense.”