Scottsdale moves toward large-water-user ordinance after unanimous council vote

Scottsdale has begun reviewing whether it needs a policy for developments or business operations with substantial water demand, but no new large-water-user rule is in effect.

The Scottsdale City Council voted 7-0 on July 1, 2026, to direct the City Manager or responsible charter officer to agendize a future work-study discussion about the possible creation of a large-water-user ordinance. The action authorized the next policy discussion; it did not adopt an ordinance, establish a water-use threshold or impose restrictions.

What the council approved

The council’s agenda item limited the possible action to directing the item to a future meeting, directing an investigation and written response, or taking no action. Mayor Lisa Borowsky moved to schedule the future work-study discussion, and the motion passed unanimously.

The mayor’s office said staff were expected to return with information and policy options in late August or early September. That remains an expected timetable until Scottsdale posts a formal agenda and any supporting staff materials.

What remains undecided

Scottsdale has not defined how much water use would qualify as “large,” which developments or businesses would be covered, or how a future review process would work.

Potential requirements, application procedures, enforcement authority, fees and penalties also remain undecided. The mayor’s office said no ordinance had been drafted or adopted when it announced the initiative.

That means the initiative is not a current restriction on data centers, hotels, industrial users, employment centers or any other specific category. Whether any particular operation would be covered can be determined only through later staff work and a formal proposal.

Why water supply is part of the debate

The possible ordinance is being presented as a potential tool for reviewing projects with significant water demands as Scottsdale plans for long-term supply risks. KJZZ reported that the city receives about 70% of its water from the Colorado River, while Scottsdale’s interim water director said the city uses only about three-quarters of that amount and has stored water and other sources.

Colorado River negotiations and possible future reductions help explain the policy debate, but they do not establish what a Scottsdale ordinance would require or whether it would address broader regional supply risks.

Scottsdale Water already maintains conservation, water-supply, recycling and Colorado River shortage-planning programs. Those programs remain in place while the possible large-water-user policy is studied.

What residents and businesses should watch

The next meaningful step will be a future work-study agenda and any staff report released with it. Residents, businesses, developers and taxpayers should look for proposed definitions, water-use data, covered project types, review standards and the legal authority staff believe the city has.

They should also watch for an explanation of how a possible ordinance would interact with zoning, development review, utility service, state requirements and existing conservation programs.

Until the council considers a specific draft, Scottsdale has a policy initiative—not a new law. Conclusions about project costs, development restrictions or enforcement would be premature.

Sources

• Scottsdale City Council July 1, 2026 agenda and meeting record
• Mayor of Scottsdale: Council advances large water user ordinance initiative
• KJZZ: Scottsdale is defending its water future in the face of big Colorado River cuts
• Scottsdale Water