AZ HB2204

Amends Arizona groundwater law to apply spacing rules and permit requirements to wells in declining groundwater basins, not just active management areas.

Requires the director to adopt rules governing well locations in declining basins for wells with pumps exceeding 35 gallons per minute to prevent damage to surrounding land and water users.

Allows persons entitled to withdraw groundwater in declining basins to construct new wells if the location complies with adopted rules and the person obtains a permit from the director under section 45-599.

Extends existing permit requirements from active management areas to declining groundwater basins to ensure consistent regulation of groundwater withdrawal across different areas experiencing water stress.