Phoenix is preparing to activate Stage 2 of its Drought Management Plan as early as January, city officials said, after federal operating guidelines will cut Colorado River deliveries to the Lower Basin by 1.25 million acre‑feet each year in 2027 and 2028. The cuts could reduce the river’s contribution to Phoenix’s water supply by roughly 30 percent, prompting the city to tighten demand‑reduction measures.
Stage 2, labeled a “Water Warning,” does not mean water service will stop. Instead, the city will adjust its operations to conserve water. “We don’t mean you’re going to go to your faucet and no water is going to come out,” Water Resources Management Advisor Max Wilson told the City Council, adding that the city has been building backup supplies and pursuing new sources, though many of those projects will take years to complete.
To help fund the response, Phoenix plans a temporary drought surcharge of $2.10 per unit (748 gallons) on water use that exceeds class‑specific thresholds: residential customers above 20 units per month, commercial users above 300 units, and industrial users above 15,000 units. The surcharge applies only to the excess usage, not to all water consumed. Based on current consumption patterns, the city estimates the surcharge would affect about 16 % of residential bills, 7 % of commercial bills and 1 % of industrial bills, generating roughly $40 million for conservation programs and projects such as the Bartlett Dam expansion.
The plan also calls for a voluntary 5 % reduction in water use by residents and businesses, with city departments targeting a 10 % cut. Incentives have been doubled: the grass‑removal credit rises from $2 to $4 per square foot, smart‑irrigation controller rebates increase from $75 to $150, and a new leak‑repair credit of $100 per year is introduced. The city urges customers to fix leaks, adjust irrigation to weather conditions, replace unused grass with desert‑adapted landscaping, and install water‑efficient devices.
Long‑term supply projects remain a cornerstone of the strategy. Phoenix is expanding stored water capacity through the Bartlett Dam project on the Verde River, advancing the Pure Water Phoenix purification facilities at Cave Creek Road, North Gateway and 91st Avenue, and participating in the Secure Water Arizona regional program. While these resources add flexibility, Wilson cautioned that backup supplies are finite.
What’s next: The city’s Water Services team presented the Stage 2 plan to council members on Tuesday, and a formal declaration could occur in January. Residents can review water‑saving tips and learn about the surcharge at phoenix.gov/savewater. The city will continue to update the public as the federal delivery reductions take effect and as new water projects move forward.
Sources: azfamily.com, azfamily.com, azfamily.com, azfamily.com
