Hedge Fund Seeks to Sell Rural Arizona's Water to Phoenix

Despite local opposition, a GOP-backed bill would allow a New York hedge fund to pump and sell water from the McMullen Basin to growing Phoenix suburbs.

Mar. 13, 2026 at 5:07pm

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A New York City-based hedge fund, Water Asset Management, has purchased 13,000 acres of farmland in the rural McMullen Valley Basin in La Paz County, Arizona. The company now wants to pump water from the aquifer and sell it to the growing Phoenix metropolitan area. Despite fierce opposition from local residents who rely on the aquifer, a GOP-led bill in the state legislature would allow the hedge fund to do so, attracting bipartisan support from Phoenix-area cities desperate for new water sources.

Why it matters

The McMullen Valley Basin's aquifer is already under stress from years of water-intensive farming, with some wells running dry and the ground sinking. Local residents fear that allowing the hedge fund to extract and sell the water will further deplete the aquifer, potentially forcing them to abandon their homes. The legislation highlights the growing tensions between rural and urban areas over dwindling water resources in Arizona.

The details

Water Asset Management purchased the 13,000 acres of farmland in the McMullen Valley Basin in 2024 for $100 million. The company says its mission is "investing in companies and assets that ensure water quality and availability." However, the people living in the basin are concerned that the hedge fund's plans to sell the water to Phoenix will devastate their community. The proposed legislation, House Bill 2758, would amend a 1991 law that designated the McMullen Basin as a water transfer basin, allowing Water Asset Management to extract and sell the water. The bill includes some restrictions, such as capping the amount of water that can be extracted and limiting the depth of the wells. But local officials say these restrictions are not enough to protect the aquifer and the people who rely on it.

  • In 2024, Emporia III, a subsidiary of Water Asset Management, purchased 13,000 acres of farmland within the McMullen Valley Basin for $100 million.
  • House Bill 2758 passed the Arizona House of Representatives on February 19, 2026.
  • The bill has not yet been scheduled for a hearing in the Arizona Senate's Natural Resources Committee.

The players

Water Asset Management

A New York City-based hedge fund that owns farmland across the western United States, including more than 6,200 acres in Arizona. The company purchased 13,000 acres in the McMullen Valley Basin in 2024 and is now seeking to pump and sell the water from the aquifer to the Phoenix metropolitan area.

Gary Saiter

The head of the Wenden Domestic Water Improvement District, located in the McMullen Basin. Saiter opposes the legislation that would allow Water Asset Management to sell the basin's water to Phoenix.

Robert Tipton

A resident of Wenden, located in the McMullen Basin, who testified against the legislation, warning that if it passes, his and his neighbors' wells will soon run dry.

Nikki Check

A Yavapai County Supervisor who spoke out against the legislation at a press conference, saying "We cannot allow our state laws to be rewritten just so a hedge fund can cash in with a giant payday on a speculative investment."

Gail Griffin

The Republican chairwoman of the Arizona House Natural Resources, Energy and Water Committee, who has the power to decide which water legislation gets a hearing. Local officials say she has blocked their proposals to address rural groundwater issues.

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What they’re saying

“We cannot allow our state laws to be rewritten just so a hedge fund can cash in with a giant payday on a speculative investment.”

— Nikki Check, Yavapai County Supervisor

“Where will we haul water from if the aquifer is depleted? Will we be forced to abandon our homes?”

— Robert Tipton, Wenden resident

“The math does not work for me. It makes no sense.”

— Gary Saiter, Head of the Wenden Domestic Water Improvement District

What’s next

The bill has not yet been scheduled for a hearing in the Arizona Senate's Natural Resources Committee, so its future remains uncertain. Local officials and residents are continuing to voice their opposition and push for alternative solutions to address the water challenges in the McMullen Valley Basin.

The takeaway

This dispute highlights the growing tensions over water scarcity in the American West, as urban areas seek to tap into rural water sources to support their growing populations. The proposed legislation raises concerns about the rights of rural communities, the role of private investment in water resources, and the long-term sustainability of water management in Arizona.