Environmental

Arizona's 'Active Management Area' (AMA) designations affect real estate development in those areas because:

AAll development is prohibited within AMAs
BGroundwater use is regulated and new subdivisions must demonstrate an assured 100-year water supply before lots can be sold✓ Correct
CProperty taxes are higher in AMAs
DBuilding permits are issued by ADWR rather than local governments

Explanation

Arizona's five Active Management Areas (AMAs—Phoenix, Tucson, Prescott, Pinal, Santa Cruz) have strict groundwater management regulations, including the requirement that new subdivisions demonstrate a 100-year assured water supply from ADWR-approved sources.

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