Arizona Cracks Down on Groundwater Pumping by Saudi-Owned Farm
Ranegras Plain, Arizona – January 17, 2026 – Arizona Governor Katie Hobbs’ governance has taken a decisive step to address the escalating groundwater crisis in the western part of the state, imposing new regulations on large-scale water users. The move targets agricultural operations, most notably Fondomonte, a Saudi-owned dairy farm and a leading consumer of groundwater in the region. This decision follows growing concerns over dwindling water tables, sinking land, and the impact on local communities.
The Groundwater Crisis in Arizona
For years, a troubling trend has plagued the desert farmlands west of Phoenix: the steady depletion of groundwater reserves. This has been largely attributed to unrestricted pumping, especially by Fondomonte, a subsidiary of the Saudi dairy giant Almarai. The company utilizes a network of wells to irrigate alfalfa crops,which are then shipped overseas to feed livestock in the Middle East. Residents in the Ranegras Plain area have watched as their wells run dry and the land itself begins to subside, a direct outcome of the falling water table.
The situation isn’t isolated to the Ranegras Plain. Across approximately 80% of Arizona, existing groundwater laws offer little to no regulation, allowing large agricultural businesses and investors to extract water with minimal oversight. This has led to a precarious situation, especially as climate change intensifies drought conditions throughout the american Southwest.According to data cited by Governor Hobbs, water levels in some areas have dropped by over 200 feet in the last four decades [1].
New Regulations and the Ranegras Plain
In response to the growing crisis, Governor Hobbs announced the designation of the Ranegras Plain as an “active management area” – a move that will subject landowners to new restrictions and reporting requirements. This action builds upon a similar regulation implemented in January 2025 targeting agricultural pumping near Willcox in southeastern Arizona [2].
Specifically, the new regulations will:
- Prohibit further irrigation of additional farmland in the affected area of La Paz County.
- Require owners of high-capacity wells to report their water usage.
- Establish a local advisory council to provide input on water management strategies.
- Mandate the development of a plan to reduce overall water consumption.
Governor Hobbs framed the decision as a necesary step to protect Arizona’s vital water resources, declaring, “We can no longer sit idly by while our rural communities go without help… They deserve solutions and security, not another decade of inaction and uncertainty” [3].
Fondomonte and the Legal Battles
Fondomonte is, by far, the largest water user in the Ranegras Plain, operating dozens of wells to sustain its extensive alfalfa fields. While the company has publicly stated its commitment to “progressive, efficient agricultural practices” and investing in water conservation technologies, it has also become the focus of intense scrutiny and legal challenges.
Currently, Arizona Attorney General Kris Mayes has filed a lawsuit against Fondomonte, alleging that its excessive groundwater pumping violates state laws and contributes to land subsidence and declining water quality.
The state’s decision to regulate the Ranegras Plain arrives alongside this lawsuit, reinforcing a multi-pronged approach to address the crisis.The legal action seeks to hold Fondomonte accountable for past practices, while the new regulations aim to prevent further depletion of the aquifer.
A History of Controversy
The situation with Fondomonte has been brewing for years. A 2022 examination by the Arizona Republic revealed that the company had been granted discounted lease rates on state-owned land [Source Needed]. This prompted Governor Hobbs to terminate Fondomonte’s leases on 3,520 acres of state land in Butler Valley in 2023,describing the company’s actions as “recklessly pumping our groundwater to boost their corporate profits.”
The company’s operations are rooted in a broader geopolitical context. Saudi Arabia banned domestic alfalfa cultivation due to its own dwindling water resources. This has led Saudi companies like Almarai to seek farmland in water-abundant regions abroad, raising concerns about the export of water scarcity.
Broader Implications for Water Management in the West
The conflict over groundwater in Arizona is emblematic of a wider crisis unfolding across the arid American West. As climate change intensifies, and populations continue to grow, the demand for limited water resources is escalating. Customary groundwater management approaches—or the lack thereof—are proving insufficient to address the challenges.
Arizona’s new regulations represent a shift toward more proactive water management, but important hurdles remain. The state’s existing groundwater laws, dating back to 1980, exempt a large percentage of land from regulation. Moreover, the legal battles surrounding Fondomonte could set a critical precedent for how states address foreign ownership of agricultural land and its impact on water resources.
Looking Ahead
The decision regarding the Ranegras Plain marks a pivotal moment in Arizona’s approach to water management. While the road ahead will be complex, with ongoing legal challenges and the need for collaborative solutions, the state’s willingness to confront the issue head-on offers a glimmer of hope for the preservation of its precious groundwater reserves. The effectiveness of these new regulations, and the outcome of the lawsuit against Fondomonte, will undoubtedly be closely watched by other states facing similar water crises across the Western united States.
