Desalination and New Water Sources: Arizona’s Strategy to Address Water Scarcity

Arizona’s Water Infrastructure Finance Authority reviews six proposals to expand water supply, including desalination, surface water, and wastewater reclamation, to combat ongoing Colorado River shortages and meet future demand.
Aug. 28, 2025
2 min read

Arizona’s Water Infrastructure Finance Authority (WIFA) is reviewing six proposals to expand the state’s water supply in response to ongoing Colorado River shortages. The proposals include options for seawater desalination, surface water, wastewater reclamation, and other new sources.

Desalination Proposals

Three of the six submissions focus on desalination:

  • EPCOR presented a plan that combines desalination with surface water, wastewater treatment, and another source.

  • ZARETAW, LLC, the owner of which worked for IDE Technologies of Israel, resubmitted a desalination and pipeline project (originally proposed in 2022 and originally in cooperation with IDE) that would transport water from the Sea of Cortez to central Arizona. The concept previously included delivery of 300,000 to 1 million acre-feet of water annually at a projected cost of $5.5 billion. It is undetermined whether IDE is involved in the new proposal. 

  • The Acciona–Fengate Water Augmentation Alliance submitted a proposal drawing on Acciona’s international desalination expertise.

None of the details within the proposals are public at this time, and they will not become available to WIFA board members until an intital review is conducted to determine which of the purposals meet the criteria specified in the solicitation for proposals. 

Funding

Arizona lawmakers initially approved $1 billion over three years for water augmentation projects, but only $333 million was deposited into the fund in 2022. As of mid-2025, the fund balance is about $376 million.

Capacity goals

WIFA is seeking between 100,000 and 500,000 acre-feet of new water within the next 5–15 years, with long-term demand projected at 1.5 million acre-feet by 2060. Up to 75% of new supply may need to come from out-of-state sources.

What happens next

WIFA staff (not board members) will evaluate all six proposals and recommend which should move forward to feasibility studies. Final selections are expected by the end of 2025.

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This summary was created with the assistance of ChatGPT and edited for accuracy.

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