AZ HB2280

Establishes "watershed health uses" as a new beneficial use of water, defined as water conserved in natural watercourses that supports watershed health attributes including hydrology, habitat condition, geomorphology, water quality, and biodiversity

Authorizes the Arizona Game and Fish Commission to acquire and lease surface water rights for watershed health uses and instream flows, expanding the commission's existing wildlife management authority

Requires the Director of Water Resources to issue a triennial report assessing the overall health of each watershed in the state, evaluating attributes such as hydrology, landscape condition, habitat, geomorphology, water quality, biological condition, and threats or vulnerabilities

Allows appropriation of unappropriated water for watershed health uses by individuals, the state (including the Arizona Game and Fish Department), and political subdivisions on a first-come, first-served basis

Permits transfer of water rights for watershed health purposes and expands instream flow applications to include watershed health as a recognized beneficial use alongside existing recreation and wildlife purposes