AZ SB1252

Adds "ecological water needs" to statutory definitions as water sufficient to sustain freshwater ecosystems, including riparian areas, wildlife habitat, and human livelihoods dependent on those ecosystems.

Adds "watershed health uses" as a new permitted water appropriation purpose, defined as water conserved in natural watercourse that supports watershed health attributes identified in director's report.

Requires the director of water resources to issue a comprehensive watershed health report every three years evaluating each Arizona watershed based on hydrology, landscape condition, habitat condition, geomorphology, water quality, biological condition, and vulnerabilities.

Directs the director to establish standard measures for ecological water needs and publish a preliminary survey of state waters by December 31, 2025, including watershed descriptions, subwatersheds with insufficient water, ecosystem monitoring recommendations, and statutory change recommendations.

Allows water rights to be transferred for watershed health purposes and exempts watershed health use applications from the five-year streamflow data requirement imposed on other instream flow applications.