Arizona Business Leaders and Mayors Form Coalition to Protect Colorado River Water Allocation

Arizona state officials, business leaders, and city mayors are uniting to defend the state's Colorado River water rights as federal negotiations over the river's allocation remain deadlocked.

The coalition, called the Coalition for Protecting Arizona's Lifeline, was originally formed by a bipartisan group of mayors in the fall of 2025 and has since expanded to include business organizations, local water companies, and tribal nations.

Arizona's business community and local leaders are attempting to balance pragmatic water solutions with urgent messaging to the public and federal government as the state's Colorado River position remains precarious.

Interior Secretary Doug Burgum told KTAR News on Monday that Arizona and the other states that use Colorado River water need to make sacrifices as they divvy up a shrinking but crucial resource. The seven Colorado River Basin states are working under interim guidelines that were implemented in response to drought conditions in 2007 and expire at the end of 2026.

"It was made during the time when it was a wet cycle. There was more water to distribute. So, everybody's got to make some sacrifices. Use that word, that's the key word," Burgum told KTAR News 92.3 FM's The Mike Broomhead Show.

Negotiations between the seven Colorado River states over a renewed sharing agreement have been deadlocked, while the U.S. Department of the Interior considers alternatives that Arizona's negotiators say are unworkable.

The state has retained the high-powered law firm Sullivan and Cromwell to represent its position in a potential court battle, but more needs to be done at the local and business levels to conserve water, find alternative supplies and communicate Arizona's position.

Neil Giuliano, President of Greater Phoenix Leadership, and Intel Senior Technologist Kelly Osborne discussed the state's critical water situation and the role corporations and cities can play in advocating for a stable water future.

"We're desert dwellers," Giuliano said. "We have been used to this for a very long time, and I think that's why we're very good at it, because we have to be."

That's why GPL joined the Coalition for Protecting Arizona's Lifeline, an advocacy project originally formed by a bipartisan group of mayors in the fall of 2025. The coalition has now expanded to include business organizations, local water companies and tribal nations.

Many of the state's biggest industries rely on Colorado River water, which is why Gov. Katie Hobbs has urged federal leaders to consider the national security and economic risks of reducing the state's allocation.

Semiconductor manufacturers like Intel need water to maintain a competitive edge over other states and other nations, but Osborne said the company is also doing what it can to conserve amid water shortages.

She said the company has decreased its freshwater withdrawal by 30 percent since 2020 while bringing two new semiconductor factories online by investing in water treatment and reclamation facilities.

"Not only do we reduce and reuse water, but we also restore more water than we consume," Osborne said. "Intel has a net positive goal for water, so water that we actually lose to evaporation, we work with nonprofits within our watersheds to go then restore water to the river."

Terry Goddard, President of the Central Arizona Project Board, noted that partnerships between public and private entities are crucial for both conserving water and advocating for Arizona's Colorado River allocation.

But he said the state's leaders need to do more to educate the business community and the public at large about the situation, highlighting a recent conversation he had with a business leader.

"He said, Well, when does it become critical? When does this issue on the Colorado River become critical? And I wanted to say, well, about five years ago if it was ever critical, it's critical right now," Goddard said.

"I feel like I'm Paul Revere, not Chicken Little," Goddard said. "The sky is not falling, but we need to make an accommodation for a different kind of more water-short future. We can do it and our cities are pioneers."

Leaders like Giuliano hope to help the state's elected officials spread that message by providing data and information they can use to make the case for Arizona's water.

"If the business community can help our elected officials ignore the political noise and just work on your long-term obligation, I think we'd be helping if we can do that," Giuliano said.

He also said the private sector needs to help government officials spread the word about potential Colorado River cutbacks without spooking investors or average citizens.

Osborne said Intel has focused on working alongside city leaders in Chandler to do just that as the company's footprint in the East Valley grows.

In the meantime, Goddard emphasized the importance of striking a balance between awareness and fearmongering.

The coalition now includes Intel, Greater Phoenix Leadership, and mayors from across the state who are working together to advocate for Arizona's Colorado River allocation.

Gov. Katie Hobbs has been urging federal leaders to consider the national security and economic risks of reducing the state's allocation. Semiconductor manufacturers like Intel need water to maintain a competitive edge over other states and other nations.

The negotiations between the seven Colorado River states remain deadlocked, and the federal government may step in with its own plan if states cannot reach an agreement.

Burgum said he hopes states can reach a deal, but added that if there's no agreement, then the states themselves will be putting their fate in the hands of a judge, which he thinks is a horrible idea.

"The meetings and negotiations continue," Burgum said. "But if there's no agreement, then we'll have to have an operating plan set up for this year and then, I guess, the states themselves will be putting their fate in the hands of a judge."