In what might be a harbinger for the housing boom in the American West, Arizona began
limiting approvals for new developments within the Phoenix area. A study found that around 4% of the area's demand for groundwater, close to 4.9M acre-feet, cannot be met over the next century, threatening to dampen the explosive development that has made the city one of the fastest-growing metropolitan regions in the country. Besides the groundwater crisis, Arizona has also faced significant shortages of its surface water allocation, with a
recent deal cutting usage from the drought-stricken Colorado River. Investing Group Leader
Ian Bezek covers the situation in
Global Water Resources: Why I'm Not Worried About The Phoenix Housing Downturn. The article on
GWRS is from a year ago, but SA users are still discussing it in the
comments section.