AZ HB2510

Establishes rural management areas that county boards of supervisors in counties outside active management areas and bordering the Colorado River may designate by resolution for groundwater basins or subbasins if conditions include approaching groundwater depletion, physical overpumping indicators, or need to protect water rights.

Creates a rural management area council of 7-9 members appointed by the governor representing groundwater users, agricultural interests, mining, industrial, residential, conservation, and tribal interests to develop and adopt area plans addressing water management goals.

Authorizes rural management area councils to petition the director of water resources to implement actions such as water measuring device requirements, annual reporting, irrigation non-expansion areas, well location rules, and voluntary conservation programs.

Amends the state lottery fund allocation to deposit $50,000,000 annually into a new department of water resources heritage fund to fund implementation and support of rural management areas and voluntary compensated land and water conservation plans.

Prohibits eminent domain use with heritage fund monies and exempts rural management area designations from altering existing water rights, establishing 10-year prohibition on converting designated areas with approved plans into locally initiated active management areas.