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The CAWCD tax is for the Central Arizona Water Conservation District, which governs the Central Arizona Project. The tax rate is 10-cents per $100 of assessed valuation, with an additional 4-cents for water storage and CAP operations. The tax supports Arizona's economy by providing a reliable water supply, generating over $1 trillion in gross state product from 1986 to 2010. The tax rate is set by the CAP Board of Directors and costs a $200,000 homeowner $20/year. The tax helps pay for CAP construction and operations, and property owners in Maricopa, Pinal, and Pima counties are required to pay it.

Additionally, there is a Central Arizona Groundwater Replenishment District (CAGRD) assessment on property tax bills for homes built after February 1995, which replaces groundwater used by homes with renewable water supplies. The assessment varies depending on the amount of groundwater used and can be reduced by using less groundwater. Homeowners cannot opt out of CAGRD, but their assessment would be $0 if their water provider switches to a renewable surface water supply.