The State of Arizona recently paused new housing construction in Phoenix and its suburbs, telling developers the water supply is about 4%, short of what's needed for growth over the next century. But many municipalities are already buying water from elsewhere and driving up prices. "Essentially, we're overdrawing that bank account of groundwater, and we're overdrawing the amount in storage," said Sharon Megdal, the director of the University of Arizona Water Resources Research Center. "I don't want to get into lecturing about supply and demand.