Are foreign investor extracting so much ground water in Arizona that the water table is going down?

 

Yes, foreign-owned companies have been extracting significant amounts of groundwater in Arizona's rural areas, contributing to declining water tables and physical land sinking. 

• Significant Water Extraction:
  • Fondomonte (Saudi Arabia): Historically used an estimated 18,000 to 22,400 acre-feet of groundwater annually in the Butler Valley to grow alfalfa.
    • This is enough water to supply roughly 54,000 households.
  • Al Dahra (United Arab Emirates): Extracts an estimated 15,000 to 16,000 acre-feet annually in La Paz County.
• Impact on Water Tables:
  • In the McMullen Valley, surface-to-water depth has dropped from roughly 100 feet in the 1950s to approximately 540 feet recently.
  • Excessive pumping has caused land subsidence (sinking), with the town of Wenden sinking by four feet.
  • This sinking has caused structural damage to local buildings, including cracked foundations.
• Recent Government Crackdown:
  • Lease Cancellations: In late 2023 and early 2024, Governor Katie Hobbs' administration canceled or declined to renew several of Fondomonte's state land leases to curb "unfettered" pumping.
  • Regulatory Limits: As of January 2026, the state has designated new "Active Management Areas" (AMAs) in the Ranegras Plain to impose limits on previously unrestricted groundwater pumping.
  • Lawsuits: In December 2024, the Arizona Attorney General sued Fondomonte, labeling its "excessive" pumping a public nuisance that harms local communities.