AZ SB1260

Amends Arizona Revised Statutes section 45-576.10 to allow cities and towns to designate areas as having assured water supply if located in both the exemption area under section 45-411.01 and the Phoenix active management area.

Expands eligibility for assured water supply designation to include lands served by an agricultural water company, in addition to lands within irrigation and water conservation districts established under title 48, chapter 19.

Requires cities and towns to contract with either an irrigation and water conservation district or an agricultural water company for at least 100 years to receive water for municipal use on district or company-served lands.

Mandates that sufficient surface water or effluent of adequate quality be continuously available to meet the city's or town's proposed water needs for not less than 100 years.

Requires cities and towns to demonstrate financial capability to construct necessary water facilities, including delivery systems, storage facilities, and treatment works, with the director able to accept construction assurances from specified statutes.