Are Chandler and Gilbert Affected by Arizona's Water Building Moratorium?

No. Chandler and Gilbert both hold Designated Assured Water Supply (DAWS) status from the Arizona Department of Water Resources, so subdivisions in their service areas don't need a separate Certificate of Assured Water Supply. The 2023 moratorium that paused new construction in Queen Creek, Buckeye, and parts of Pinal County never applied to Chandler or Gilbert — both cities secured long-term water commitments years ago, largely through Central Arizona Project (CAP) allocations. Chandler is even one of the parties actively defending the state's groundwater rules in court. Court rulings in 2026 are still reshaping how the state evaluates groundwater statewide, so it's worth confirming current status before you close — but Chandler and Gilbert homeowners aren't in the same position as their Queen Creek neighbors.

By Cabrina Mỹ Sampaga | August 13, 2026

If you've been searching for a home in the East Valley lately, you've probably seen the headlines. "Arizona Is Running Out of Water." "Water Crisis Looming in 2026." They're everywhere, and they're scary enough that I get asked about it almost every week — usually by a buyer who's found a house they love in Chandler or Gilbert and wants to know if they're about to buy into a problem.

Here's the short version: you're probably fine. But you should still understand what's actually going on, because the water story in Arizona right now is more complicated — and more local — than the headlines make it sound.

What Actually Happened With Arizona's Water Moratorium

Back in 2023, a report commissioned under Governor Katie Hobbs found that groundwater levels across parts of the Phoenix metro area were unexpectedly low. In response, the Arizona Department of Water Resources stopped issuing the certificates that developers need to build new subdivisions in certain areas — specifically Buckeye, Queen Creek, and unincorporated parts of Pinal County.

That's an important detail people often miss: it wasn't a statewide ban. It was targeted at specific communities that rely heavily on groundwater and hadn't yet secured a 100-year supply through other sources.

The fallout has been messy. The Homebuilders Association of Central Arizona sued, arguing ADWR overstepped its authority when it changed how it evaluates groundwater. In 2026, a state judge agreed with part of that argument and struck down a piece of the rule — but what replaces it is still working its way through the courts and the legislature. On the other side of that fight, the City of Chandler itself, along with Salt River Project and the Arizona Municipal Water Users Association, has been defending ADWR's framework — which tells you something about how seriously Chandler takes protecting its own water position.

Meanwhile, Queen Creek is working on its own fix: an application for what's called an Alternative Water Designation, plus a deal to import roughly 5,000 acre-feet of Harquahala water annually, with another 12,000 acre-feet under agreement.

If you're watching this play out from the outside, it's easy to assume the whole Valley is affected. It isn't.

Why Chandler and Gilbert Are Different

Chandler and Gilbert are both designated as having an Assured Water Supply (DAWS) — a status the state grants to municipal water providers that have already proven they can supply water for 100 years without relying on a shrinking groundwater basin.

What that means in practice: subdivisions built within Chandler's or Gilbert's water service areas don't need to go get their own Certificate of Assured Water Supply the way a developer in Queen Creek currently does. The city's designation already covers them.

Both cities lean heavily on Central Arizona Project water — a renewable allocation from the Colorado River, not groundwater pumped from underground. Gilbert, in particular, has spent years shifting its long-term strategy toward renewable surface water specifically to reduce its dependence on the aquifer. That's the kind of planning that put Chandler and Gilbert on the safe side of this issue years before it became a headline.

None of that means water policy in Arizona is settled — it isn't, and the legal fight over groundwater rules is still active as of this year. But it does mean the specific crisis you've been reading about, the one that halted construction in Queen Creek and Buckeye, was never about Chandler or Gilbert in the first place.

What This Means If You're Buying (or Investing) Right Now

A few practical takeaways, whether you're buying a $400,000 single-family home or evaluating a $1.5 million investment property:

  • Location matters more than the headline. "Arizona's water crisis" is really several separate, localized issues. A house in Chandler and a house in unincorporated Pinal County can have completely different water situations even though they're 20 minutes apart.
  • Ask about the water provider, not just the city. Some newer subdivisions on the edges of Chandler or Gilbert are served by smaller private water companies rather than the city system — always confirm which provider serves the specific parcel.
  • If new construction in Chandler is on your list, don't wait too long. Separate from the water issue, Chandler is running low on horizontal land — as of this spring, the South Price Corridor is essentially built out. The window to buy brand-new single family construction inside Chandler city limits is closing in this market cycle for reasons that have nothing to do with water and everything to do with land supply.
  • For investment properties, factor in the long game. If you're building a rental portfolio in the East Valley, water policy is one more thing worth tracking over a 10–20 year hold, even in cities that are currently unaffected. The rules have already changed once; they could shift again.
  • Don't let a scary headline talk you out of a good deal in the wrong market. I've had buyers walk away from strong Chandler listings because they'd read about the Queen Creek moratorium and assumed it applied everywhere. It didn't, and they lost a house they actually wanted.

This is exactly the kind of question I walk my buyers and investors through before we write an offer — not just "is this a good house," but "is this a good house in a market with a water story I actually understand."

Frequently Asked Questions

Does the Arizona water moratorium affect homes for sale in Chandler or Gilbert?

No. The moratorium applied to new development approvals in Buckeye, Queen Creek, and parts of Pinal County. Chandler and Gilbert already hold Assured Water Supply status and were not part of the restriction.

What is a Designated Assured Water Supply (DAWS)?

It's a status the Arizona Department of Water Resources grants to a city or water provider that has demonstrated it can supply water for 100 years without depleting local groundwater. Chandler and Gilbert both hold this designation.

Is it still safe to invest in East Valley rental property given the water news?

Cities with existing DAWS status, like Chandler and Gilbert, aren't affected by the current moratorium. Areas without that designation, like parts of Queen Creek and Pinal County, are still working through their water supply options — worth factoring into a long-term investment decision.

Is new construction still available in Chandler?

It's limited and shrinking, though for land-availability reasons rather than water. As of early 2026, Chandler's South Price Corridor is nearly built out, so the window for brand-new single-family construction inside city limits is narrowing.

Will Arizona's water rules change again?

Possibly. A 2026 court ruling struck down part of how ADWR evaluates groundwater, and the legal and legislative fight over what replaces it is ongoing. It's worth checking current status on any home before closing, especially in areas near the affected zones.

Where can I check if a specific house is in an area with secured water supply?

Your city's water department (Chandler or Gilbert) can confirm which service area and provider a parcel falls under, and I can help you track that down as part of your home search.

If you're weighing a purchase in Chandler, Gilbert, or anywhere else in the East Valley and want a straight answer about what's actually happening with water — and land — in that specific area, not just what the headlines say, reach out. I'm happy to walk you through it.

About Cabrina Mỹ Sampaga
Cabrina Mỹ Sampaga is a real estate agent serving buyers, sellers, and investors across Chandler, Gilbert, Mesa, Queen Creek, and greater Phoenix, with experience in residential, commercial, leasing, and property management, and serves both English- and Vietnamese-speaking clients. Reach Cabrina at 602-780-2482 or Cabrina@LeSampaga.Team.