AZ HB2729

Allows persons with grandfathered groundwater rights in the Phoenix, Tucson, or Pinal active management areas to sell, lease, or convey portions of their rights to pump groundwater to other persons within the same area.

Requires sellers or lessors to notify the Department of Water Resources with transaction details including buyer/seller names, lease duration, amount of groundwater involved, price per acre-foot, and transaction costs.

Limits buyer or lessee to receiving 65 percent of the groundwater forgone by the seller or lessor, with 35 percent of the original grandfathered right permanently removed from use.

Exempts purchased or leased groundwater from replenishment obligations, city groundwater use allowances, and treats it as consistent with active management area goals and eligible toward certificates of assured water supply.

Directs the Department of Water Resources to establish and maintain a publicly accessible online water exchange platform listing all groundwater transactions.