Is Scottsdale running out of water? No. The City of Scottsdale says the 2026 Tier 1 Colorado River shortage does not reduce its supply, and there are no mandatory water restrictions. Taps in 85250 work exactly as they did last year.
So why is everyone asking? Because the rules that divide the Colorado River expire at the end of 2026. Axios reported on Oct. 22 that Scottsdale's river allocation could fall 17% in 2027, the price of a planned water purification plant has climbed to as much as $164 million, and a 4.5% water rate increase takes effect Nov. 1.
Data note: Figures come from the City of Scottsdale's Colorado River Update and from reporting by Axios Phoenix (Oct. 22, 2026) and KJZZ (June 2, 2026). Future Colorado River allocations are not final.
Where Scottsdale's Water Comes From
The city runs a diversified portfolio, which is why a shortage on one river doesn't turn off the tap:
- Colorado River via the Central Arizona Project (CAP): about 70% of supply, per KJZZ
- Salt and Verde rivers, delivered through SRP
- Reclaimed water, treated and put back to use
- Groundwater, plus water the city has stored underground for future use
What Changed in 2026
The Colorado River Rules Are Expiring
- The 2007 interim guidelines that govern shortages expire at the end of 2026
- The U.S. Bureau of Reclamation released its Final Environmental Impact Statement in July 2026
- Lake Mead stood near 1,039 feet in August 2026, per the City of Scottsdale
A Possible 17% Cut in 2027
- Axios reported Scottsdale's CAP allocation could drop 17% in 2027
- The city has not been using its full allocation, which gives it some cushion
- No mandatory restrictions have been announced
The Price of New Water Is Rising
- Axios: the proposed advanced water purification plant, which would recycle wastewater into drinking water, is estimated at up to $164 million
- Adding a South Scottsdale wastewater pump station could push the total to as much as $261 million
- Two related projects totaling about $87 million, including a wastewater pump station near Indian Bend and Hayden roads, were submitted for the FY2027-28 capital budget
- City Council took no action at the October briefing
Why It Matters in 85250
Your Water Bill
- Nov. 1, 2026: a 4.5% water rate increase takes effect (KJZZ)
- Part of the new revenue is earmarked for additional water sources, such as Harquahala Valley groundwater and a possible Bartlett Dam expansion
- Axios quoted a city official telling council that "water rates may go up" again as projects move forward
Your Neighborhood
- The Indian Bend and Hayden pump station project sits right on the edge of 85250, near Chaparral Park
- Large capital projects can mean construction and lane closures; watch city notices if the project is funded
Your Yard
- Stage 1 drought status (since 2021) means conservation is encouraged, not required
- If you are thinking about a switch to desert landscaping, the city offers rebates. See our sister site's Scottsdale water rebates guide and our xeriscape garden post
Does Water Affect Home Values?
There's no data showing a water discount on 85250 homes, and I won't invent one. What water does affect is ownership cost and buyer questions:
- Monthly bills for homes with large lawns or pools
- Landscape choices: low-water yards are easier to defend to buyers asking about the river
- Disclosure: Arizona sellers already complete the SPDS, which asks about water source and service. See our seller disclosure guide
Practical Steps for 85250 Owners
- Audit your irrigation before winter: shorter, less frequent cycles once temperatures drop
- Check for leaks with your meter: turn off all water and watch for movement
- Consider partial turf removal; front-yard grass is often the easiest cut
- Read the city's Colorado River Update for official changes; Scottsdale Water Resources is at 480-312-5650
“When buyers from out of state ask me about water, I give them the straight answer: Scottsdale has planned for this longer than most cities, and nothing has been restricted. What I tell owners is to think like the next buyer. A smart irrigation timer and less thirsty landscaping cost little and answer the question before it's asked.”
— Elizabeth Vijan, Tackett Team, eXp Realty
FAQ: Scottsdale Water Supply
Is Scottsdale running out of water?
No. The 2026 Tier 1 shortage does not reduce Scottsdale's supply, and there are no mandatory restrictions.
Is there a water shortage in Scottsdale right now?
There's a Tier 1 shortage on the Colorado River, but Scottsdale remains in voluntary Stage 1 conservation.
Are Scottsdale water rates going up?
Yes, 4.5% on Nov. 1, 2026, with more increases possible as new projects are funded.
How much of Scottsdale's water comes from the Colorado River?
About 70%, and that allocation could fall 17% in 2027.
Thinking About Selling in 85250?
I'll walk your home and yard with you, flag the water and landscape questions buyers ask now, and build a plan to answer them before you list.
Elizabeth Vijan | Tackett Team, eXp Realty
Chaparral Park Resident & 85250 Real Estate Expert
Plan My Pre-Listing Walkthrough · Call or text 602-885-7752
Sources: City of Scottsdale: Colorado River Update · City of Scottsdale: Water Supply · Axios Phoenix: Scottsdale's wastewater recycling plans could cost $261M (Oct. 22, 2026) · KJZZ: Scottsdale's 4.5% water rate increase (June 2, 2026) · City of Scottsdale: Water rates and fees
Disclaimer: Colorado River allocations, city projects and water rates are subject to change by federal, state and city decision-makers. This is general information, not engineering or legal advice. Information deemed reliable but not guaranteed. Equal Housing Opportunity.
