Scottsdale is considering new rules that would require major new water users to plan for conservation and face additional scrutiny as Colorado River supplies tighten. The City Council has not voted on the proposal and is waiting for staff to prepare final language. At a Sept. 22 work session, city staff recommended a tiered system: new users consuming more than 100,000 gallons a day would submit a conservation plan; those using more than 250,000 gallons daily would also need an economic-impact analysis; and projects above 500,000 gallons a day would require further review and council approval. The proposal would apply to new users, not existing ones. The ordinance could also establish penalties for users who violate their conservation plans, a provision not included in current city regulations. Scottsdale has 12 entities classified as large water users, and none currently exceeds 500,000 gallons per day. They include two hospitals and six multifamily properties or homeowners associations in the 100,000-to-250,000-gallon range, as well as an HOA and a resort using between 250,000 and 500,000 gallons daily. Mayor Lisa Borowsky, who brought the issue forward, said she wants the city to consider requiring new large users to provide their own water if their plans do not fit Scottsdale’s water strategy. City Attorney Luis Santaella said he would examine whether that provision could be added, while warning that such a requirement may conflict with the city’s 100-year assured water supply designation, under which Scottsdale must provide water for new development. Councilwoman Jan Dubauskas asked whether the city could require the two largest users to use reclaimed water, rather than drinking-quality water, for outdoor needs. Data centers and semiconductor factories are among the types of businesses that can use substantial amounts of water, although Scottsdale currently has no facility in those industries using more than 100,000 gallons a day. The debate comes as residential use remains the largest part of Scottsdale’s demand: single-family and multifamily homes accounted for more than 80% of the city’s water use in 2025. Borowsky said the ordinance is intended to avoid imposing water cuts on residents. Councilman Adam Kwasman raised concern that large-scale rules could eventually affect homeowners despite assurances that the proposal targets major users. The council will consider the measure after staff completes the proposed language.