Does H20 = Growth in Arizona? That is how many people view the water-growth equation -- any introduction of "new" water supplies inevitably stimulates population growth and economic activity. However, the report by Morrison Institute for Public Policy, Growth on the Coconino Plateau, offers some surprisingly contrary conclusions. Completed on behalf of Arizona Department of Water Resources and the Coconino Plateau Watershed, this document is relevant for all regions of rural Arizona. Among the findings: - Some rural areas in the West have constructed major water supply projects only to see most of their towns languish, not prosper. - New water infrastructure in growing rural counties hasn't affected the size so much as the pattern of new development. - Leapfrog sprawl into unincorporated areas has been discouraged in regions where cities and towns hold control over the distribution of new water supplies. Bottom line, water won't automatically produce population growth. But planning for water - how it is supplied and governed - does offer a useful tool for managing future growth. Moreover, it can provide some measure of protection for the environment. We believe this report has important application well beyond northern Arizona. By providing original research and analysis on the water-growth equation, this report helps resolve one of Arizona's most critical issues. As a result, public policy discussions in the future will be able to focus on the state's most important growth drivers and how they can be managed.

This publication updates the January 2004 study, New Returns on Investment in the Knowledge Economy: Proposition 301 at Arizona State University, FY 2003. Both works were launched by the report, Seeds of Prosperity: Public Investment in Science and Technology Research (2003), by Morrison Institute for Public Policy. Morrison Institute will periodically publish new material to keep you informed of the status of Proposition 301 investments at Arizona State University.