In the late 1940s, the Arizona Legislature authorized the State Land Commission to designate "critical groundwater areas."' In 1973, the legislature began to require developers of land to prove that they had an "adequate" water supply.' However, failure to demonstrate such an adequate supply did not prevent the developer from subdividing the lands; it only required notification to initial purchasers that there might not be an adequate supply of water.' Subsequent purchasers likely received no such notice. This report provides an overview of what occurred with the Central Arizona Groundwater Replenishment District.