AZ SB1385

Changes water adequacy requirements for subdivisions outside active management areas from optional ("may") to mandatory ("shall") for counties adopting the requirement under section 11-823.

Requires the director of water resources to evaluate water supply plans for proposed subdivisions and designate cities, towns, or private water companies as having adequate water supplies.

Establishes exemptions from water adequacy requirements for subdividers with substantial pre-existing capital investment or those with adequate water supply becoming available within twenty years.

Applies water supply adequacy standards to real estate subdivision filings with the state real estate commissioner, requiring developers to demonstrate adequate water supplies before selling subdivision lots.

Extends statewide applicability of water supply adequacy protections by making compliance mandatory rather than discretionary for local jurisdictions outside active management areas.