AZ SB1742

Authorizes the Arizona Department of Water Resources director to establish rural groundwater management areas in basins outside existing Active Management Areas where groundwater depletion threatens long-term water supply sustainability.

Requires rural groundwater management areas to develop and implement conservation plans with specific withdrawal limits, well registration requirements, and reporting obligations for large-scale water users.

Establishes a stakeholder advisory council for each rural management area composed of local agricultural, municipal, industrial, and residential water users to provide input on management decisions.

Creates exemptions for small domestic wells (typically under 35 gallons per minute) and existing agricultural operations with grandfathered water rights, though these users must still register their wells.

Sets enforcement mechanisms including civil penalties for violations of withdrawal limits or reporting requirements, with funds collected deposited into a rural water management fund.