Developer Owned Utilities Struggle to Manage the Cost of Water in Northern Arizona

The Arizona Daily Sun details the curious case of subdivision development, private utilities, and skyrocketing utility rates that linger as an effect of the last development cycle of boom and bust.

1 minute read

April 7, 2015, 10:00 AM PDT

By James Brasuell @CasualBrasuell


Emery Cowan reports on the quickly escalating cost of water in an Arizona subdivision known as Flagstaff Meadows, which is served by a utility called Utility Source. The utility is requesting a rate increase from state regulators that would, if allowed, quadruple the price of water for residents in the last nine years.

In Flagstaff Meadows, Cowan reports, such high water rates would be too much for some homeowners to bear. Unfortunately, the Arizona Corporation Commission, the publicly elected body that regulates private utilities, predicted many of the development's current problems back in 2004 when the subdivision was first built.

According to Cowan: "While Utility Source's case is unique in many ways, several key issues are the product of larger development challenges that are pervasive across the state: small developer or landowner-owned utilities with costs that overwhelm a small ratepayer base, subdivisions left half-built after developers went bankrupt during the housing bust and a reliance on groundwater that, at least in northern Arizona, is difficult and expensive to access and pump."

Arizona has more than 400 small utilities, according to the article, which is an unusually high number. So many small utilities leads to problems with economies of scale, expertise on the part of the utilities, and trouble dealing with impacts arising from the persistence of zombie subdivisions.

Sunday, April 5, 2015 in Arizona Daily Sun

Young Professional

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban and Environmental Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban and Environmental Planner

Get top-rated, practical training for planners

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

September 23, 2026 - Zachary Whalen

Passengers board an Amtrak train under a cloudy sky.

Amtrak, CN end decades-long dispute with eight-year agreement

The new operating agreement establishes an updated framework for the companies to work together, including processes to resolve disputes.

September 18, 2026 - Mass Transit

An Airo train driving towards the camera on a track. There is a forest behind it.

Northwest rail fans eager for Sept. 30 debut of Amtrak’s Airo fleet

Get ready for that new train smell and more seats. But they won’t go faster or run more frequently on the Cascades route in Washington and Oregon.

September 22, 2026 - Washington State Standard

Two people in hi-vis vests install solar panels on a blue roof.

Trump administration unlawfully slashed $7 billion in clean energy grants, judge rules

The Environmental Protection Agency ended the Solar For All program, which provided the grants, after President Donald Trump’s inauguration.

7 hours ago - Inside Climate News

The largest wildlife overpass in North America stretching over the I-25. Both sides of the overpass, and the overpass itself, are covered in brown grass.

Record-breaking wildlife overpass in Colorado brings 91% reduction in animal collisions

Prior to the overpass, vehicles were hitting one deer per day on Colorado’s Interstate 25.

September 28 - CBS Colorado

Gov. Gavin Newsom speaks with both hands half-raised. Two American flags, and the flag of California, are behind him.

California lawmakers approve just 5% of much-needed LA28 transportation funding

State legislators appear just as unwilling as Trump to pay for Olympics-related transportation projects.

September 28 - LA Times

FREE Course: Walkable City 1: Why Walkability?

After describing his path towards focusing on walkability as the essence of good planning, Jeff Speck marches through his five principal reasons for making more walkable places.

Reinventing Malls: Planning Alchemy—Turning Gray Fields Into Gold

The course focuses on the opportunities and imperatives that shape reinvention of mall sites.

Senior Planner

City of Thousand Oaks

Community Development Director

City of Wisconsin Rapids

Professor of Urban Planning

Harvard University Graduate School of Design