The Town of Queen Creek continues to work towards water self-sufficiency, implementing a strategic vision for the Town’s water future. The Town recently received a $90 million loan from the Water Infrastructure Finance Authority (WIFA) to fund a portion of the Town’s new water source.
In 2025, the Town purchased 500,000-acre feet of water (over 100 years) from Harquahala Valley, providing a proof of concept for this source of water. Harquahala Valley is a water storage basin designated by the State for transportation to other areas. The proof of concept included a hydrology study that demonstrated there is 8.2 million acre-feet of water available for transport over 100 years.
In late 2025, the Town approved funding an additional 1.2-million-acre feet of water for $244.4 million. The combined water purchases from Harquahala Valley of 1.7 million-acre feet, bring the Town’s water portfolio to 90% drought-proof and only 6% reliant on local groundwater pumping.
The specific WIFA funding was allocated in 2025 by the Arizona State legislature to fund new water sources, with a loanamount of $90 million. After an extensive application process, the Town was awarded the full $90 million. The terms of the loan include 30-years, with the first two years interest only and an interest rate of 3.9%.
To meet the timing of the Harquahala Valley water purchase, the Town authorized the sale of the Certificates of Participation (COPs) and the WIFA application simultaneously in late 2025. The $90 WIFA loan will replace a portion of the $244.4 million in COPs, allowing the $90 million of COPs to create capacity to be used for infrastructure to access the water, and transport it through the Central Arizona Project (CAP).
“This was exceptionally well done,” stated Queen Creek Mayor Julia Wheatley. “This Council and previous Councils have been working to diversify the Town’s water supply for years, before water was a daily topic of conversation. Thanks to the foresight and forward thinking, we were positioned to apply for this funding. The timing is outstanding and this furthers our efforts to become water self-sufficient.”
The COPs were sold on Jan. 15, 2026, with a term of 40 years, an interest rate of 4.9% and annual debt service of $12.1 to $14.8 million. This funding mechanism was specifically recommended due to the debt service better matching the life of the asset.
Water Strategy
Queen Creek has ample groundwater - replenishing it is expensive. Groundwater removed from the aquifer must be replenished in accordance with the 1980 Arizona Groundwater Management Act. To comply with this mandate, most of Queen Creek’s water customers are members of and pay fees to the Central Arizona Groundwater Replenishment District (CAGRD), which is included in their property tax bill (properties developed prior to 1996 are exempt).
Queen Creek water customers who are CAGRD members may not be aware of the full cost of these fees, as the Town of Queen Creek has been utilizing water credits and other assets to offset these costs for its customers since 2018. This was a result of Council resolutions to reduce costs to customers as an interim measure, with the ultimate goal of water self-sufficiency to manage costs locally and not depend on local groundwater pumping. Depending on the year the subdivision was developed, these costs were reduced anywhere from 33% to 100% - saving Queen Creek water customers approximately $71.8 million since 2018. This was an interim measure until the Town became a designated water provider; the Town cannot continue to offset CAGRD for water customers indefinitely.
Funding the Water Purchase
When the Town becomes a designated water provider, any remaining replenishment fee will be paid directly by the Town. And with the additional water sources, there will be significantly less local groundwater pumping, meaning less replenishment requirements. The Town will pay for the water sources by creating a water resource fee that will replace the existing CAGRD replenishment fee that 89% of water customers are currently assessed.
When the Town becomes designated and implements a water resource fee (in place of CAGRD), any current exemptions would be eliminated. While the structure of the Town’s resource fee is still being developed, it will apply to all customers as designation benefits the system as a whole. The resource fee will go through the Town’s public fee setting process, anticipated for fall 2026.
Becoming a designated water provider is the next step in the Town’s development, like establishing a fire department in 2008, establishing a police department in 2022 and now securing QC’s water future, by becoming a designated water provider. The Town of Queen Creek is committed to securing a more reliable and locally controlled water future.
To learn more about the Town’s water strategy, visit the Water Future page on the Town’s website. To stay updated on Town happenings and events, follow the Town’s Facebook page and the Town’s X account.
Media Contact:
Eric Everts, Public Information Administrator
480-358-3196
QCPIO@QueenCreekAZ.gov