ADAWS Program Unlocks a New Era for Pinal County CRE
On March 4, 2026, Governor Katie Hobbs signed off on something central Arizona’s commercial real estate and developer community had been waiting two decades to see. Arizona Water Company (AWC) received a 100-year Alternative Designation of Assured Water Supply (ADAWS).
This is the first of its kind in Pinal County’s Active Management Area since the early 2000s.
ADAWS closed a gap that often caused delays in commercial projects across the Sun Corridor for an entire generation.
For CRE investors, developers, and business owners monitoring the Phoenix-Tucson corridor, the question is no longer whether large-scale growth can happen here. It’s how quickly they can act before pricing increases it.
At Rowe and Associates, our skilled Arizona commercial real estate team has been monitoring the pulse of water regulations for years. Today, we share what this new program means for commercial real estate investors considering a position in Pinal County.
Why Water Matters More than Zoning in Arizona
Arizona’s 1980 Groundwater Management Act requires any new subdivision or commercial developer in an Active Management Area to demonstrate a legally assured water supply spanning 100 years.
Fast forward to 2019, and a Pinal County groundwater model from the Arizona Department of Water Resources (ADWR) showed the aquifer could not support that standard under existing commitments. Development stalled. Land that was otherwise ready to be built on sat unfinished.
The ADAWS framework fixed that issue by giving water companies a new way to meet the 1980 requirements. Instead of depending entirely on groundwater, they can now use a mix of sources, like rivers and lakes, renewable water, and recycled wastewater.
According to the Governor’s Office, AWC’s 2026 designation clears the path for more than 80,000 new homes across Coolidge, Casa Grande, and surrounding communities, while continuing to serve roughly 40,000 existing customers.
That elevated number of new growth is not isolated to residential areas. Logistics spaces, grocery-anchored retail, medical offices, and light industrial zones have all seen an increased demand right along with them.
The Commercial Real Estate Story the Headlines Missed
Most of the media coverage about the ADAWS program framed it as a residential housing story. Doing so missed out on the greater impact that the program also has on commercial spaces.
Why? Because industrial tenants looking into mega-sites need assurance that a century-long supply of land is available before they commit. On top of that, shops and restaurants won’t commit to opening in an area if there’s no room for new housing to bring in customers.
Here are a few projects that were already in place before March 4, 2026:
- 2022: Procter and Gamble announced a $500 million fabric care facility to be built on roughly 430 acres at Inland Port Arizona in Coolidge.
- 2022: Kohler’s announced a nearly one-million-square-foot manufacturing plant in Casa Grande on 216 acres that became fully operational in 2024.
- 2020: TSMC picked North Phoenix for its massive new microchip plant. Building that factory created a ripple effect, drawing in a whole network of suppliers and new businesses that are now spreading south through the Sun Corridor.
How to Capitalizing on ADAWS in Pinal County
Not every acre in Pinal County benefits from the ADAW program equally. Individual parcels still need entitlement, zoning, and permitting on their own timelines. Because of that, pinpointing the right spots within the AWC service territory is our team’s top priority. Here’s a look at how we’re mapping submarkets out.
- Casa Grande is the most actionable entry point right now. Thousands of pre-zoned industrial acres, utilities already stubbed to many parcels, and the I-8/I-10 interchange essentially in its backyard. For straight logistics and distribution plays, it’s hard to find a better-positioned site in the Southwest at this price point.
- Coolidge is where the mega-site money is going. Inland Port Arizona—2,738 acres on SR-87 with Union Pacific running through it—already landed P&G and Nikola. The designation clears the way for the next round of tenants who were waiting on exactly this kind of certainty before committing.
- San Tan Valley is a longer-horizon play, but the fundamentals are stacking up. Residential growth is pushing south from the TSMC corridor, and retail, medical, and light industrial will follow on roughly a three-to-five-year lag. Early land positions here are still reasonably priced relative to what absorption will eventually demand.
- Florence and the eastern portions of the AWC footprint don’t get much attention from out-of-state buyers yet. That’s part of the opportunity.
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The AWC Pricing Is on Borrowed Time
Land pricing inside the AWC service area hasn’t caught up to what the March 4 designation actually means yet. That gap is real—but institutional capital is methodical. It moves through modeling, committee review, and site visits before it commits. Some of that process is still running. Once it completes, pricing will reflect it.
If you already hold acreage inside the footprint, your original underwriting probably doesn’t account for what this designation added to the value case. It would be worth revisiting before someone else prices it for you.
Coming in fresh? The first question isn’t which submarket—it’s whether the specific parcel you’re looking at sits inside AWC’s service territory. Not all of Pinal County qualifies, and that confirmation happens at the parcel level, not the county level.
It’s important to note that water is just the starting line. The sites that are actually moving in this area already have power, sewer, and fiber ready to tap into—and many industrial parks in Casa Grande and Coolidge already check every single one of those boxes.
Map Your ADAWS CRE Strategy Today
Our team offers dedicated commercial and industrial real estate services across the Phoenix metro and Pinal County growth corridor. We track active listings, pre-market opportunities, and current legislative updates across Casa Grande, Coolidge, San Tan Valley, and the Sun Corridor.
Whether you are evaluating an initial project in the corridor or reassessing an existing portfolio in light of this designation, we bring seasoned market knowledge to every conversation. Schedule a consultation with our team to discuss how the ADAWS program could fit into your specific growth strategy.