What Are Type 2 Water Rights in Arizona?
Type 2 Non-Irrigation Grandfathered Rights are a valuable and flexible category of groundwater rights regulated by the Arizona Department of Water Resources (ADWR). Established under the 1980 Arizona Groundwater Management Act, these rights are designed for non-irrigation groundwater use within designated Active Management Areas (AMAs).
Key Features of Arizona Type 2 Water Rights
1. Non-Irrigation Use Only
Type 2 water rights are intended for non-agricultural purposes, such as:
- Commercial and industrial use
- Golf courses
- Livestock watering
- Sand and gravel operations
These rights are based on the maximum annual groundwater use from 1975–1980 for a specific non-irrigation activity.
2. Flexibility and Transferability
Unlike other types of groundwater rights, Type 2 rights can be sold or leased:
- They are not tied to a specific piece of land.
- They can be leased in whole or in part.
- If sold, the entire water right must be transferred as a unit.
3. Use Within the Same AMA
Type 2 rights must be used within the same Active Management Area in which they were originally issued. However, with ADWR approval, the point of withdrawal can be changed within that AMA.
4. Certificate of Ownership
The right is evidenced by a certificate issued by ADWR, which is required for:
- Sale or lease of the right
- Modifications to the point of withdrawal
- Official recognition of ownership
Type 2 vs. Type 1 Groundwater Rights in Arizona
| Feature | Type 1 Right | Type 2 Right |
|---|---|---|
| Use Type | Non-irrigation from retired farmland | Non-irrigation (historical non-farm use) |
| Transferability | Appurtenant to the land | Freely transferable or leasable within AMA |
| Point of Withdrawal | Tied to the original well | Changeable with ADWR approval |
| Flexibility | Limited flexibility | High flexibility for urban and industrial needs |
Importance of Type 2 Rights in Arizona Water
In Arizona’s regulated water framework, Type 2 groundwater rights offer critical flexibility for commercial and municipal planning. These rights are often used for high-demand purposes in growing cities and industries where securing a renewable water source can be difficult. Because these rights can be leased or sold independently, they are highly sought-after assets for landowners, developers, and water-dependent businesses.
Need Help with Type 2 Water Rights in Arizona?
Whether you’re looking to buy, lease, or modify a Type 2 right, contact us and we will put you in touch with a water broker who can help you find the surface water to meet your needs. Email us at sales@westernwaterbrokers.com to schedule a consultation or learn more about how we can assist with your water rights needs.