AZ HB2073

Adds "watershed health uses" as a permitted water appropriation purpose in Arizona water law, defined as water conserved in natural watercourses that supports watershed health attributes.

Requires the Department of Water Resources to issue a triennial report assessing the overall health of each watershed in Arizona based on hydrology, landscape condition, habitat condition, geomorphology, water quality, biological condition, and threats to the watershed.

Authorizes the Arizona Game and Fish Commission to acquire and lease surface water rights for watershed health uses and instream uses.

Permits instream flow applications for watershed health purposes in addition to existing recreation and wildlife purposes, requiring applicants to submit five years of streamflow measurement data.

Allows water rights to be transferred for watershed health purposes and clarifies that the Game and Fish Department can appropriate water as the State of Arizona for these uses.