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Investors are buying AZ farmland to sell Colorado River water allotment to PHX area home developers

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Portable irrigation system on a crop in the Casa Grande valley.

An investment company has purchased nearly 500 acres of farmland along the Arizona-California border with plans to take its water allotment and send it to the Phoenix area for new housing developments.

AZCentral reports the investment company Greenstone bought the farmland and is awaiting federal approval to sell most of its water entitlement to the town of Queen Creek, north of Phoenix. It’s one of the fastest-growing suburbs in Arizona.

If approved, the purchase could pave the way for similar deals as water demand in the Southwest outpaces supply.