AZ HB2731

Allows cities and towns owning historically irrigated land in the Big Chino subbasin of the Verde River groundwater basin to withdraw groundwater for transportation to an adjacent initial active management area or to the headwaters of the Verde River within the Big Chino subbasin.

Limits annual groundwater withdrawal to two times the annual transportation allotment, and limits any ten consecutive year period to ten times the annual transportation allotment, with the allotment calculated at three acre-feet per acre of historically irrigated acres retired from irrigation.

Permits cities and towns in the Prescott active management area to withdraw and transport 8,068 acre-feet per year from the Big Chino subbasin if they relinquish a central Arizona project water supply allocation and enter into a federally-approved Indian water rights settlement.

Allows additional groundwater withdrawal beyond the 8,068 acre-feet annual limit when a city or town delivers more than 231 acre-feet of water to an Indian tribe on its reservation pursuant to a federally-approved settlement, with the additional amount equal to deliveries exceeding 231 acre-feet.

Permits groundwater transported under the settlement provisions to be delivered to and used by any city, town, or Indian tribe in the Prescott active management area regardless of which entity withdrew the water.