Monday night, Town Water Utility Director Peter Abraham and his staff updated the Water Utility Commission. They provided several interesting and useful pieces of information.Water Utility had another financially successful year in 2026
The Water Utility ended fiscal year 2025-26 with revenues above budget and expenses below budget. Revenue totaled $22.34 million, approximately $371,000 more than projected. Expenses totaled $20.29 million, approximately $1.47 million below budget. Staff attributed the savings to vacant positions, lower operating and maintenance costs, capital-project timing and careful spending as the Utility works to complete the $52 million Northwest Recharge, Recovery and Delivery System.
Abraham credits the favorable results to good planning, accurate forecasting and a sound rate-setting model.
CAP water continues to reduce Oro Valley’s reliance on groundwater
Abraham presented the water-use report for the first six months of the year. Oro Valley’s main service area produced 4,211 acre-feet of water: 2,110 acre-feet of groundwater, 1,127 acre-feet of CAP water and 974 acre-feet of reclaimed water. Total production was approximately 120 acre-feet lower than during the same period in 2025, even as the number of customer connections continued to grow. In the much smaller Countryside service area, increased CAP deliveries allowed the Utility to reduce groundwater production from 114 acre-feet during the first half of 2025 to just 38 acre-feet this year.
Yes. CAP reservoirs are very low, but the practical effect on Oro Valley is limited for now
Colorado River reservoir levels are near historic lows, but Oro Valley has not yet been told that its CAP allotment will be reduced. Abraham explained that a moderate reduction would most likely mean less water placed into storage for future use—not an immediate reduction in water delivered to customers. For now, the Town plans to request its full annual allotment. “Come October 1st, if no one says anything, I’m ordering 10,305 acre-feet again,” Abraham said.
Next Winter...CAP Water begins its direct flow to Oro Valley... Slow build up
Oro Valley’s strong water position does not guarantee protection from future cuts... but it does help
Responding to a commissioner’s question, Abraham said Oro Valley’s strong water position does not necessarily make it a target for the state or other communities seeking a larger share of the available supply. However, he acknowledged that no one yet knows how future reductions will be allocated. Any attempt to penalize Oro Valley for conserving and storing water would likely produce a significant legal and political fight, particularly because other southern Arizona communities have made similar investments.
As we wrote last week, decades of planning and investment have put Oro Valley in a stronger position
As LOVE reported in last week’s articles, Oro Valley’s present water position was not created by a single project or decision. It is the result of decades of planning, investment and regional cooperation. Town leaders and Water Utility professionals secured CAP rights, developed a reclaimed-water system, built delivery infrastructure and stored water for future use. Those decisions have given Oro Valley greater flexibility as conditions on the Colorado River worsen. They do not eliminate the risk, but they place the Town in a far stronger position to manage it.
The Town plans to begin introducing CAP water through the Northwest Recharge, Recovery and Delivery System in January. Although NWRRDS will eventually have capacity to deliver as much as 4,000 acre-feet annually, the Utility will not move that amount into the system immediately. Abraham said deliveries may begin at approximately 500 acre-feet during the first year and increase to about 1,000 acre-feet during the second. The gradual approach will give operators time to manage changes in water temperature, flow direction and water chemistry.
Although NWRRDS water and Tucson-wheeled water both originate as CAP water that has been recharged and recovered from an aquifer, they come through different wells and delivery systems. The new supply may therefore have a different mineral content, hardness and temperature than the water Oro Valley customers currently receive. Staff will flush lines, monitor water quality and adjust operations as customers and the distribution system become accustomed to the new supply.
Oro Valley’s strong water position does not guarantee protection from future cuts... but it does help
Responding to a commissioner’s question, Abraham said Oro Valley’s strong water position does not necessarily make it a target for the state or other communities seeking a larger share of the available supply. However, he acknowledged that no one yet knows how future reductions will be allocated. Any attempt to penalize Oro Valley for conserving and storing water would likely produce a significant legal and political fight, particularly because other southern Arizona communities have made similar investments.
As we wrote last week, decades of planning and investment have put Oro Valley in a stronger position
As LOVE reported in last week’s articles, Oro Valley’s present water position was not created by a single project or decision. It is the result of decades of planning, investment and regional cooperation. Town leaders and Water Utility professionals secured CAP rights, developed a reclaimed-water system, built delivery infrastructure and stored water for future use. Those decisions have given Oro Valley greater flexibility as conditions on the Colorado River worsen. They do not eliminate the risk, but they place the Town in a far stronger position to manage it.
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