Scottsdale expands its water reserve with $8.25M Harquahala credit purchase

Scottsdale City Council approved an $8.25 million purchase of 15,000 acre-feet of Long-Term Storage Credits in Harquahala Valley on June 23, adding another layer to the city’s long-term water reserve. City materials say the deal lifts Scottsdale’s inventory of stored water credits to nearly 293,000 acre-feet.

The key detail for residents is what this does not do: it does not create a new reservoir, a new pipeline, or an immediate new source of drinking water at the tap. Instead, Scottsdale is buying stored water assets that can be held for future use as part of drought planning and supply management.

How long-term storage credits work

In Arizona water accounting, long-term storage credits are earned when eligible water is stored underground and tracked by the Arizona Department of Water Resources. Those credits can later be recovered, transferred, or sold. Scottsdale’s city news release says the purchased credits were generated from Central Arizona Project water stored in Harquahala Valley, west of Phoenix.

The city says the credits can be held indefinitely, giving Scottsdale more flexibility if future shortages tighten available supplies. That matters in a state where water planning has become a long-range budgeting issue, not just an emergency response.

Why Scottsdale is making the purchase now

City officials framed the purchase as a resilience move tied to Scottsdale’s broader Water Strategic Plan. In the council agenda packet, staff asked members to approve a contract with Vidler Water Company, Inc. and to move $8.25 million from the Water Capital Improvement Plan into a new capital project for the purchase.

The council approved the item 7-0. The city’s own explanation says the Harquahala credits help diversify Scottsdale’s water portfolio by adding stored supplies outside the metro area and by strengthening the city’s drought buffer for the future.

Scottsdale already relies on a mix of Central Arizona Project water, Salt River Project water, groundwater wells, and reuse. The Harquahala purchase does not replace any of those sources. It adds to the reserve behind them.

What residents and businesses should take from it

For households, employers, and developers, the practical takeaway is that Scottsdale is spending on water security before a crisis forces its hand. That does not mean the next dry month disappears from the forecast. It does mean the city is trying to widen its margin for future shortages.

In plain English: Scottsdale is paying now for a bigger long-term cushion later. The move is a policy decision about resilience, not a new water supply announcement.

Sources

• City of Scottsdale: water security story on Harquahala credit purchase
• City of Scottsdale Council agenda packet, June 23, 2026
• Arizona Department of Water Resources: recharge accounting and credits