Desert cities around Phoenix are constantly facing questions of water supply — not just at water management agencies but also at city councils considering where to develop. That’s because Arizona has one of the most powerful laws in the country linking water with the decision to build. State law limits growth where water is in short supply, requiring new subdivisions to show they have 100 years of water for their customers. … Developers have found a profitable workaround. Arizona’s water law applies only when lots are subdivided into smaller lots for six or more homes and those houses are either sold or made available for long-term rentals. Instead, developers have turned to building short-term rentals on a single large piece of land.

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