Arizona draws a line on groundwater use after letting Saudi-owned company pump freely for years

"For years, the water table has been dropping beneath thousands of acres of desert farmland in western Arizona, where a Saudi-owned dairy company has been allowed to pump unlimited amounts of groundwater to grow hay for its cows. But the company and other landowners in the area will now face limits under a decision by state officials to impose regulation. Arizona Gov. Katie Hobbs said Monday that her administration is acting to "crack down on the out-of-state special interests that are pumping our state dry while Arizona families and farmers suffer.""

"Fondomonte, part of the Saudi dairy giant Almarai, is by far the largest water user in the area, using dozens of wells to to irrigate alfalfa that it ships overseas to the Middle East. After conducting a review, the state Department of Water Resources designated the Ranegras Plain area, located 100 miles west of Phoenix, as a new "active management area" to preserve the groundwater. This isn't the first time the Democratic governor and her administration have used this approach to curb excessive pumping in a rural areas. In January 2025, her administration similarly established a new regulated area to limit agricultural pumping around the city of Willcox in southeastern Arizona."

Groundwater levels have been dropping beneath thousands of acres of desert farmland in western Arizona, driven by extensive irrigation for hay. Fondomonte, part of the Saudi dairy giant Almarai, is the largest water user in the Ranegras Plain, operating dozens of wells to irrigate alfalfa that is shipped overseas. The state Department of Water Resources designated the Ranegras Plain as a new active management area to preserve groundwater and impose pumping limits. Residents have experienced plunging well levels and land subsidence as the aquifer has been depleted. The governor previously used the same regulatory approach near Willcox in January 2025.

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