Ariz. Rev. Stat. § 45-1003 – Use of water pursuant to a water exchange

A. A person who receives water pursuant to a water exchange or water exchange contract:
1. 1. May withdraw, or divert, and use the water without holding a right to that water other than the authority granted by the water exchange or water exchange contract.
2. 2. May use the water only in the same manner in which the person had the right to use the water that person gave in trade.
3. 3. Shall comply with all orders of the director and all laws and rules relating to the water that the person gives in the exchange, including the restrictions on transportation of groundwater in chapter 2, articles 8 and 8.1 of this title.
B. A person who gives groundwater in an exchange is subject to the restrictions on transportation of groundwater and the provisions regarding payment of damages in chapter 2, articles 8 and 8.1 of this title as though:
1. 1. The person who gave the groundwater withdrew the groundwater at the location where it was actually withdrawn by or for another party.
2. 2. The person who gave the groundwater used the groundwater at the location where the person who gave the groundwater actually used the water it received in the exchange.
C. If groundwater is withdrawn in an active management area or irrigation non-expansion area, the person who actually withdraws the groundwater shall comply with section 45-604.