Skip to content
Visiting or new to Scottsdale? Start here
Scottsdale.tips
Utility Land & water Since 1903 Runs the Arizona Canal, elects its board by the acre

Salt River Project: The 1903 Farmers' Mortgage That Became Scottsdale's Canals, Its River Water and Half Its Power Bills

The Salt River Project is the Valley's water-and-power utility, born when about 4,800 landowners pledged 200,000 acres in 1903 so the federal government would build Roosevelt Dam. It owns the Arizona Canal through Scottsdale, delivers river water south of it, powers much of south and east Scottsdale, and still elects its board one vote per acre.

Illustration for Salt River Project: runs the arizona canal, elects its board by the acre

The 30-second version

  • The Salt River Valley Water Users' Association incorporated February 9, 1903; about 4,800 landowners pledged more than 200,000 acres for Roosevelt Dam, dedicated March 18, 1911.
  • The Arizona Canal predates it: W.J. Murphy finished the 41-mile ditch in May 1885, and it still runs four miles across Scottsdale from Pima Road to 64th Street.
  • The Agricultural Improvement and Power District, created in 1937 so the Depression-strapped Association could borrow tax-free, now runs the power business and sets its own rates.
  • Board elections run one vote per acre; the Supreme Court upheld the system 5 to 4 in Ball v. James on April 29, 1981.
  • In Scottsdale, SRP water serves only land south of the Arizona Canal (16,894 acre-feet a year); SRP power serves parts of the south, center and east, APS the rest.

The gap it was created to fill

By 1900 the Salt River Valley had canals but no storage. The February 1891 flood had torn out the Arizona Canal's dam, a drought from 1898 left farms dry, and private reservoir schemes never raised their money. The 1902 Reclamation Act offered a federal dam on one condition: landowners had to form a single body that pledged their land to repay it. On February 9, 1903, about 4,800 of them, Scottsdale's farm families included, incorporated the Salt River Valley Water Users' Association and pledged more than 200,000 acres.

Founded

1903

Founded by

Benjamin A. Fowler, Joseph H. Kibbey, About 4,800 Salt River Valley landowners

Legal shape

Two entities: a private Arizona corporation (the Salt River Valley Water Users' Association, 1903) and a political subdivision of the state (the Salt River Project Agricultural Improvement and Power District, 1937)

Where

1500 N. Mill Avenue, Tempe (Papago Park Center)

Mission since founding

Expanded

Grew into new work ahead of any documented need, usually following the money.

How it began

Designed

Founded to a plan; the charter and the practice started out matching.

Official site

srpnet.com ↗

How it’s run

Who decides
Two landowner-elected boards (14 District directors, 10 Association governors) set rates; a general manager runs operations
Who pays
Electric and water revenue from about 1.2 million accounts, plus tax-exempt bonds; no Corporation Commission review
Who belongs
Landowners inside the 1903 project boundary, one vote per acre; renters and corporations have no vote

Why it matters

Scottsdale exists because of a ditch, and the Salt River Project owns the ditch. The Arizona Canal that William J. Murphy finished in 1885 still crosses the city on the diagonal, carrying Salt and Verde river water that SRP stores behind six dams. Below the canal, on land the Valley’s farmers pledged in 1903, SRP water reaches Scottsdale taps through the Chaparral plant. SRP power lines serve much of the city’s south, center and east, while APS serves Old Town and most of the north.

It is also one of the strangest institutions in American local government: two bodies wearing one name. The private Salt River Valley Water Users’ Association formed on February 9, 1903; the public Agricultural Improvement and Power District was created in 1937 so the Association could borrow tax-free. The District now serves about 1.2 million electric accounts, and its board is elected by landowners at one vote per acre. The Supreme Court looked at that in 1981 and let it stand.

Where to find it today

The canal. Four miles of the Arizona Canal cross Scottsdale from Pima Road to 64th Street, with a path past Chaparral Park and the Waterfront: walk, ride or lead a horse, never swim. The Crosscut Canal Path continues down 64th Street to Tempe on a canal the Association dug in 1912 and 1913.

The water. The Chaparral plant inside Chaparral Park turns SRP river water into drinking water; the Scottsdale Water guide explains the blend.

The ballot. If your power bill says SRP and you own your house, you get a ballot in April of even-numbered years, weighted by the size of your lot.

How it started

The Salt River Valley of the 1880s was watered by private canal companies digging along, and above, the lines the Hohokam had laid down a thousand years earlier. The boldest was the Arizona Canal Company, formed in December 1882, which hired railroad contractor W.J. Murphy in 1883 to run a canal along the high line of the north valley. He finished it in May 1885, largely on credit, and three years later an Army chaplain named Winfield Scott bought 640 acres beside it.

The weakness was storage. On February 19, 1891 the biggest flood on record tore out the Arizona Canal’s wooden diversion dam; a drought beginning in 1898 then nearly emptied the river. Private reservoir schemes could not raise the money. The federal government could, and the Reclamation Act that Theodore Roosevelt signed on June 17, 1902 offered a dam if the landowners would guarantee repayment.

That condition shaped everything after. Judge Joseph H. Kibbey drafted the plan, and Phoenix publisher Benjamin A. Fowler, who had spent two winters in Washington lobbying for the act, chaired the committee that wrote the articles. On February 9, 1903, about 4,800 landowners incorporated the Salt River Valley Water Users’ Association under territorial law and pledged more than 200,000 acres as collateral. Because each acre secured the same share of the debt, each acre carried one vote. Scottsdale’s farm families signed with everyone else. Roosevelt Dam, then the tallest masonry dam in the world, was dedicated by its namesake on March 18, 1911. The Reclamation Service ran the works until November 1, 1917, when it handed operation to the Association.

The decisions that locked it in

Power to pay for water. The dam came with a hydroelectric plant, and the Association learned quickly that electricity sold to mines and farms could carry the water bills. It opened the Arizona Falls plant on the canal at 56th Street in 1913 and the Crosscut plant by 1915. In 1918 William Kimsey, Charles Miller and E.O. Brown started Scottsdale Light and Power by buying current from Arizona Falls. By the time the Supreme Court looked at SRP in 1981, 98% of the District’s revenue came from power.

The 1937 District. The Depression broke the Association’s finances. Arizona’s 1922 Agricultural Improvement District Act offered public districts cheap tax-exempt borrowing, but with one vote per landowner, which many Association shareholders refused to accept. The Association asked the Legislature to change the law, and on November 27, 1936 it did: districts would vote one acre, one vote. In 1937 the Association transferred all its property to the new District, and after amendments in 1946 and 1949 the District ran the power business while the Association ran water as its agent, with one management for both since 1949. The choice bought cheap money and, as a side effect, placed a public utility outside the Corporation Commission’s rate authority, where it remains.

Selling water to cities. In 1952 SRP agreed to supply Phoenix’s domestic water; Scottsdale and the other cities followed. The acreage rule held: SRP water goes only to on-project land, which in Scottsdale is the farmland south of the Arizona Canal. The city’s 16,894 acre-feet a year is a right attached to those old fields, not to the city as a whole, which is why north Scottsdale drinks Colorado River water instead.

Defending the acre-vote. When residents who owned no land or less than an acre sued, the Ninth Circuit held in 1980 that a utility serving a quarter-million customers had to obey one-person-one-vote. The Legislature had already softened the system, allowing fractional votes for small lots in 1969 and adding four at-large seats in 1976. On April 29, 1981, the Supreme Court reversed in Ball v. James. Justice Stewart’s five-vote majority called the District’s functions “of the narrow, special sort which justifies a departure from the popular-election requirement.” Justice White’s dissent called it “an integral governmental actor providing important governmental services to residents.” The system Fowler’s committee wrote in 1903 still elects the board that sets Scottsdale’s SRP rates.

The years it nearly ended

The Association’s near-death came before its birth, in the flood of 1891 and the drought that followed. The 1930s produced the public District that defines it today. The 1976 to 1981 litigation could have ended landowner government of the power business entirely; SRP gave up the at-large seats and fractional votes, kept the rest, and the Ninth Circuit upheld the system again in Smith v. Salt River Project in 1997.

What it set out to do, and what it does now

The 1903 articles describe a repayment cooperative: pledge the land, build the dam, deliver stored water to member acres. The Association delivered, and retired the debt in October 1955 at a total cost of about $10 million for the dam and original works.

What grew around that purpose was a power company. Electric customers went from 12,400 in 1947 to about 500,000 by 1988 and to 1,183,163 accounts by April 2025, served by coal, gas and nuclear plants across four states. Water delivery remained, in the Court’s phrase, its “primary and originating purpose,” but by the 1980s it was a minority of the business. The District’s statement of purpose today is to provide “reliable, affordable and sustainable water and power to more than 2 million people and businesses in central Arizona.” The constituency moved too: in 1937, 94% of District land was farmed; by the early 1980s about half was urban. Today the acre-voters are overwhelmingly homeowners on quarter-acre lots, and in a 2022 district race fewer than 10% of them voted. One advocate told Grist in 2026 the system was “effectively feudal.”

Scottsdale’s imprint runs through one man. Bill Schrader, the farm boy who became the city’s first charter mayor in 1962, joined the SRP board in 1964 and was its president from 1994 to 2006, the years of the Roosevelt Dam raising and the fight over electric deregulation. Executives of both SRP and APS have sat on Scottsdale’s council and chamber boards throughout the city’s history.

Who the record leaves out

The Akimel O’odham and Piipaash. The Salt River Reservation was set in 1879 along what became Scottsdale’s eastern edge, and the Arizona Canal crosses it on the way from Granite Reef. The Salt River Pima-Maricopa Indian Community descends from the people who built the first canals here, yet its water rights were not settled until 1988, in a settlement to which SRP, the Association and Scottsdale were all parties. The 1879 reservation and the 1988 settlement are documented; the decades between them are mostly absent from SRP’s own telling.

Everyone who rents. Ball v. James was brought by people who lived in the District, paid its bills and could not vote for its board. They are still there, and Grist’s 2026 reporting found condominium owners worth a hundredth of a vote each.

Scottsdale’s own founders. The 4,800 signatures of 1903 include Scottsdale’s farm families, but no public source names them.

What it didn’t have to become

The acre-vote. Arizona’s 1922 district law offered one vote per landowner, and in 1936 the Association could have accepted it as the price of public financing. It asked the Legislature for a special rule instead, and got it; had it not, Ball v. James would never have been filed. The alternative was written in statute and rejected by shareholders who did not want to dilute the power of large acreage. The data-center fights, the gas-versus-solar slates and the sub-10% turnouts of 2026 all follow from that choice. The water was always going to be stored. Who would govern it was not.

Who paid for it at the start, and what they got

The United States built Roosevelt Dam under the Reclamation Act against the landowners' pledged acreage; the Association repaid the debt, making its final payment to the Treasury in October 1955. The government's price was control: the Reclamation Service ran the works until November 1, 1917. The landowners' price was the acre-vote. Because the land secured the debt, each acre carried one vote, a rule that has outlived the debt by seventy years.

The decisions that locked it in

Each one could have gone another way. What was chosen, what was on the table instead, and what the choice made permanent.

  1. 01 1903

    Incorporate as a private association of landowners, one vote per acre, and pledge the land as collateral for a federal dam.

    Held in place by Law & contracts

    Instead, it could have
    A private reservoir company on the model of the failed Hudson Reservoir Company, or a municipal or county water district.
    What it locked in
    Water rights tied to specific acres, which is why Salt River water still goes only to Scottsdale's on-project land south of the Arizona Canal, and an acreage-based franchise that still elects the board.
  2. 02 1917

    Take over operation of the canals and dam from the Reclamation Service, and sell surplus hydroelectric power to pay the water bills.

    Held in place by Money

    Instead, it could have
    Leave operation with the federal government and remain a pure repayment entity.
    What it locked in
    Power became the Association's revenue engine; Scottsdale Light and Power bought its first electricity from the Association's Arizona Falls plant in 1918.
  3. 03 1936–1937

    Form the Salt River Project Agricultural Improvement and Power District as a political subdivision of Arizona, after getting the Legislature to make its voting identical to the Association's.

    Held in place by Law & contracts

    Instead, it could have
    Keep financing through corporate bonds; or accept the standard one-landowner-one-vote district the 1922 statute offered, which many Association shareholders feared.
    What it locked in
    Tax-exempt borrowing, exemption from Corporation Commission rate regulation, and a public power utility governed by an acre-vote written into state law.
  4. 04 1952

    Contract to supply Phoenix with domestic water, with Scottsdale and the other cities signing similar contracts later.

    Held in place by The people who depend on it

    Instead, it could have
    Remain an irrigation supplier as farms gave way to subdivisions.
    What it locked in
    SRP became an urban water wholesaler; Scottsdale now takes 16,894 acre-feet a year and treats it at the Chaparral plant.
  5. 05 1976–1981

    Defend the acreage vote all the way to the Supreme Court while the Legislature added four at-large seats and fractional votes for small lots.

    Held in place by Law & contracts

    Instead, it could have
    Concede one-person-one-vote for the power district, as the Ninth Circuit had ordered.
    What it locked in
    A utility serving more than 1.1 million accounts whose rate-setting board is still elected by landowners, with turnout under 10% in a typical district race.

What it set out to do, and what it does

Mission since founding: Expanded. Grew into new work ahead of any documented need, usually following the money.

Then

To pledge members' land as security for a federal storage dam and deliver stored Salt River water to the lands of its roughly 4,800 member landowners (articles of incorporation, 1903).

Now

To provide 'reliable, affordable and sustainable water and power to more than 2 million people and businesses in central Arizona' (SRP service-area statement, 2026).

The years it nearly ended

What threatened it, and what was given up to get through.

  • 1891–1904

    Before it existed: the February 1891 flood tore out the Arizona Canal's dam and the 1898 drought nearly emptied the river; the valley's answer was to mortgage its farms to the federal government.

  • 1930s

    Depression-era farmers could not make payments on the dam loans and corporate bond financing had grown too costly. The Association asked the Legislature for a public district that could sell tax-exempt bonds, and in 1937 handed all its property to the new District. The price was a second layer of government whose power business would come to dwarf the water business.

  • 1976–1981

    Residents who owned no land or less than an acre sued to apply one-person-one-vote to the District's board. The Ninth Circuit agreed with them. The Supreme Court reversed, 5 to 4, in Ball v. James on April 29, 1981, and the acre-vote survived.

The people behind it

Founders, the long servers, and the names that recur. Linked names have their own profile.

  • William J. Murphy Built the Arizona Canal that the Project later took over 1883–1885
  • Benjamin A. Fowler Lobbied for the Reclamation Act; first Association president 1903–1910
  • Joseph H. Kibbey Judge who drafted the Association's plan and articles 1903
  • Franklin K. Lane Interior Secretary who handed operation to the Association 1917
  • Bill Schrader Scottsdale mayor turned SRP board member and president 1964–2006
  • Potter Stewart Wrote the Supreme Court majority upholding the acre-vote 1981

Connected guides on this site

The people on its boards, the places it built or runs, and the rules it works under.

Its decades 1900s1910s1920s1930s1940s1950s1960s1970s1980s1990s2000s2010s2020s

Salt River Project by the numbers

Feb. 9, 1903

Incorporated

200,000+ acres

Land pledged

1.18 million (2025)

Electric accounts

One

Votes per acre

The timeline

  1. 1883–1885

    The Arizona Canal Company hires railroad contractor William J. Murphy; his crews finish the Arizona Canal, better than 40 miles long, in May 1885, opening the bench where Winfield Scott buys land in 1888.

  2. 1891–1898

    The flood of February 19, 1891 takes out the canal's wooden dam; a drought beginning in 1898 leaves farms dry and sends settlers looking for a storage dam.

  3. 1903

    Under Judge Joseph Kibbey's plan, about 4,800 landowners incorporate the Salt River Valley Water Users' Association on February 9 and pledge more than 200,000 acres as security for a federal dam; Benjamin Fowler is its first president.

  4. 1911

    Theodore Roosevelt dedicates Roosevelt Dam on March 18; the Association takes over operation of the dam and canals from the Reclamation Service on November 1, 1917.

  5. 1913–1915

    Hydroelectric plants open at Arizona Falls on the Arizona Canal and on the new Crosscut Canal at 64th Street; in 1918 Scottsdale's first power company buys its electricity from Arizona Falls.

  6. 1937

    After the Legislature rewrites the Agricultural Improvement District Act to allow acreage voting, the Association transfers its property to the new Salt River Project Agricultural Improvement and Power District, which can sell tax-exempt bonds.

  7. 1955

    The final payment on Roosevelt Dam, Granite Reef and the original works goes to the U.S. Treasury in October; the debt that justified the acre-vote is gone.

  8. 1981

    On April 29 the Supreme Court decides Ball v. James, 5 to 4, holding that the District's acreage-based elections do not violate the Equal Protection Clause.

  9. 1994–2006

    Bill Schrader, Scottsdale's first charter mayor, serves as SRP president; the city dedicates the Chaparral plant for SRP water in January 2007.

  10. 2026

    With about 1.2 million electric accounts and data-center demand projected to triple by 2035, the April 7 board election becomes a contested fight over gas plants versus solar, still decided one vote per acre.

Questions people actually ask

Is Scottsdale served by SRP or APS?

Both. APS and its predecessors have served the old townsite since Scottsdale Light and Power began in 1918, and APS covers most of north Scottsdale, while SRP serves parts of south, central and east Scottsdale. The line does not follow one street, so check your bill or either utility's address lookup.

Does Scottsdale get its water from SRP?

Part of it. SRP water goes only to on-project land, which in Scottsdale means land south of the Arizona Canal, the acres pledged in 1903; the city receives 16,894 acre-feet a year and treats it at the Chaparral plant inside Chaparral Park. Most of the city's supply is Colorado River water through the Central Arizona Project.

Who owns the Arizona Canal through Scottsdale?

SRP. The canal was built privately in 1883 to 1885 and became part of the federal project after 1903; SRP operates it today as the northernmost canal in its system. SRP allows walking, running, cycling and horses on the banks and prohibits swimming and fishing.

How do SRP elections work?

Landowners inside the District vote one vote per acre, with fractional votes for smaller lots, so a half-acre house lot is half a vote; renters and corporations do not vote. Ten of the fourteen District board seats, plus the president and vice president, are elected that way, and four at-large seats are one landowner, one vote. Elections are held in April of even-numbered years.

Why doesn't the Corporation Commission regulate SRP?

Because the 1937 District is a political subdivision of the state, not an investor-owned utility. Its own board sets water and power rates. APS, by contrast, is investor-owned, and the elected Corporation Commission sets its rates.

The record, and its holes

Where the facts come from, and what we looked for and could not find. A missing record is a finding, not an apology.

What we couldn’t find

  • SRP's own website refused our requests, so its history timeline, governance page and canal history are cited only where other sources quote them; dates were checked against the Bureau of Reclamation, court records and law-review accounts instead. Not public
  • The exact SRP-versus-APS electric boundary inside Scottsdale is published only as a map in the city's General Plan, not as a list of streets; we can say SRP serves parts of south, central and east Scottsdale and that the line cuts through neighborhoods, but not more precisely. Never written down
  • We could not find how many of the 4,800 original Association members farmed in Scottsdale, or which Scottsdale families signed; the shareholder rolls exist in SRP's archives but are not public, and the day page for February 9, 1903 says they signed without naming them. Not public
  • Sources disagree on the Association's founding date (February 7 versus February 9, 1903) and on when the four at-large board seats were added (1974 versus 1976); this page follows the Bureau of Reclamation on the first and the Arizona State Law Journal on the second.
  • The April 7, 2026 board election was reported as a split result (a clean-energy board majority, a Turning Point USA-backed president), but the report itself was behind a block we could not get past, so the vote counts are missing here. Not public

Sources

Vernacular & LexiconSRP vs. APSThe Water Users' AssociationThe Reclamation Act and Roosevelt DamThe Arizona CanalAcre-footSRPMIC (the Community)The Valley (of the Sun)The Salt River

Facts checked: October 2, 2026 • Curated by the Scottsdale.tips editors • Written from the organization’s own records, the press and the archives; boards, budgets and names change. Corrections are welcome.