A well-drafted shared well agreement is not one-size-fits-all—it must be carefully tailored to the unique circumstances of each property and group of homeowners. By clearly outlining the rights, responsibilities, and limitations of each party, a customized agreement helps minimize disputes and provides lasting peace of mind. In contrast, generic boilerplate agreements found online often lack the precision needed to address real-world complexities—and can actually create serious legal and practical problems down the road.
Over the years, I’ve consulted with hundreds of Arizonans facing conflicts related to shared wells. A recurring theme in nearly every case is a vague or poorly written well agreement. Without clear rules and enforceable guidelines, misunderstandings are almost inevitable.
Our shared well agreements go far beyond the basics. We address critical details such as how water may be used and in what quantities. For instance, our agreements often include provisions like: “Well water shall be used exclusively for bona fide domestic purposes. It shall not be used for irrigation of crops, orchards, livestock, or extensive gardening. Water may not be sold, nor used for any commercial activity.” These provisions are vital to prevent abuse of a finite resource.
Because wells have limited capacity, overuse by one household can leave others without adequate water. Many wells simply cannot support pools, horses, and large gardens for every user. Excessive use not only depletes the supply but also drives up electricity costs and reduces water pressure for everyone. That’s why we include specific limits and enforcement mechanisms to ensure fairness and sustainability.
Every property, well, and ownership arrangement is different. That’s why we craft each agreement from the ground up, taking into account not just the obvious issues, but also the more nuanced questions, such as:
- Should each property be required to install its own flow meter?
- Are owners of vacant parcels responsible for costs, even if they aren’t actively drawing water?
- If a homeowner stops using the well, are they still obligated to contribute to maintenance and repairs?
- Can water be used for swimming pools, horses, orchards, or gardens—and if so, under what conditions?
- Should new users pay a buy-in fee to access the system?
These are just a few of the many issues we help our clients navigate to ensure their well share agreements are enforceable, practical, and tailored to prevent future conflict.
Benefits to the Well Owner- The “Grantor”
A well share agreement provides significant legal protections for the well owner (the “Grantor”). Chief among these is the ability to enforce cost-sharing obligations against the water recipients (the “Grantees”). If a Grantee fails to contribute to the cost of electricity, maintenance, or repairs, the agreement gives the well owner the legal authority to restrict or terminate their access to water until compliance is restored.
Importantly, under Arizona law, the right to extract groundwater is tied to a permitted well—not merely to land ownership. Owning the land where the well is located, or holding an easement or undivided interest in that land, does not automatically grant the legal right to withdraw groundwater. Groundwater extraction is only lawful if it comes from a well that has been properly permitted by the Arizona Department of Water Resources (ADWR). A well share agreement helps ensure that those rights are properly documented and protected.
Benefits to the Water Recipients- The “Grantees”
For those receiving water from a shared well, a properly drafted well share agreement is indispensable. Without a written agreement, the Grantee has no legally enforceable right to access or use the well. In such cases, the well owner could revoke access at any time—regardless of prior verbal agreements or neighborly goodwill.
If the well is located on someone else’s property, you must take proactive legal steps to secure and protect your access. A well share agreement not only grants legal rights to use the water, but also defines responsibilities—such as cost-sharing, usage limits, and maintenance obligations—which helps prevent disputes and misunderstandings down the line.
Some homeowners believe a formal agreement isn’t necessary because they “get along great with their neighbors.” But relationships change, and properties change hands. If the property is sold or the relationship deteriorates, the absence of a binding agreement can leave a Grantee without water—and without any legal remedy. A well share agreement endures beyond neighborly goodwill; it protects your rights for the long term.
Gather & Verify the Information
The foundation of a strong well share agreement is accurate and complete information. Drafting a legal agreement with outdated or incorrect data is like trying to bake a crème brûlée with expired ingredients—it doesn’t matter how good the recipe is if the ingredients are wrong.
One critical piece of data is the Assessor’s Parcel Number (APN). This unique identifier is used by Arizona counties to catalog and assess property for tax purposes. Parcel numbers can change when properties are split, merged, or subdivided, so it’s essential to confirm that the APNs listed in your agreement are current and correct. This is just one of many verification steps we take when drafting a customized well share agreement.
Verify Well Ownership Records with the ADWR
While the Arizona Department of Water Resources (ADWR) does not oversee the drafting or enforcement of well share agreements, it does require that well ownership records be kept up to date. If a property with a well is sold, the new owner must affirmatively update the ADWR records—recording a deed alone is not enough.
Failure to update the ownership can result in complications, especially when applying for modifications, requesting data, or responding to regulatory inquiries. Updating ownership involves submitting the proper forms and paying a small administrative fee to the ADWR.
“A person to whom a well is registered must notify the Arizona Department of Water Resources (ADWR) of a change in ownership of the well and the new owner must furnish information as required by ADWR to keep well registration records current and accurate.” A.R.S. 45-593(C)
Record the Agreement
Once the Agreement has been approved and signed by all Parties, it is recorded with the county. In large part it is recorded so that someone cannot later challenge the veracity or accuracy of the Agreement.
Once the Shared Well Agreement is recorded with the county, a copy is provided to the ADWR. They will scan the recorded agreement and save it in the Well’s permanent file. Even though the ADWR does not get involved in Shared Well Agreements it is still a best practice to send them a copy of the recorded agreements.
If you need help from an experienced water law attorney, then contact the Dunaway Law Group at 480-702-1608 or message us HERE.
* The information provided is informational only, does not constitute legal advice, and will not create an attorney-client or attorney-prospective client relationship. Additionally, the Dunaway Law Group, limits its practice to the states of Arizona and New York.