Cave Creek delays Harquihala purchase and outlines water strategy amid 30‑year drought

Cave Creek officials told residents they are pursuing multiple steps to secure drinking water as the region faces a prolonged drought, while declining to exercise a previously signed Harquihala water contract after high costs and timing concerns.

The town has invested nearly $18,000,000 in a Phoenix interconnect project that officials say will deliver up to 1,400,000 gallons per day of treated Central Arizona Project (CAP) water and add roughly 1,000,000 gallons of reserve capacity for firefighting and reliability. The town expects the interconnect to be operational by spring 2026.

“We are the most impacted town on Colorado River water because 90 to 95% of our water comes from the Central Arizona Project,” the primary presenter said, summarizing why the interconnect and other measures are urgent.

The town also described other measures: launching the My360 customer app in 2025 to let users track hourly water use; refurbishing existing wells for emergency supply; banking excess CAP water to trade or use in shortfalls; and ongoing engagement with the Arizona Department of Water Resources and the Arizona Water Banking Authority.

Officials said the town had placed $50,000 earnest money on a contract to buy 500 acre‑feet for 100 years (a figure the presenter said was about $11,200,000) but later declined to move forward after phase‑1 engineering and cost estimates came in higher than expected and partner timing did not align. “We had $50,000, I’ll call it earnest money in there, and we got that back,” the presenter said.

The presenter cited price signals from other projects: he said Harquihala was offered at about $21,500 per acre‑foot for a 100‑year supply, while he characterized the Bartlett Dam/Verde River option as having escalated to roughly $75,000 per acre‑foot—figures the town said affected its decision‑making.

The town urged residents to conserve outdoor irrigation water and promoted the My360 tool as a low‑cost way to manage use. Town staff and the town manager said they will continue to evaluate market opportunities, federal and state funding programs, and partnerships with neighboring municipalities.

Next steps: interconnect construction and commissioning through spring 2026; continued due diligence on potential purchases and ongoing engagement with state water authorities.