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Arizona's Groundwater Management Act, enacted in 1980 to encourage conservation and to limit future mining of water, is considered the most comprehensive state groundwater management plan enacted to date. This article describes the consumption-supply imbalance that led to passage of the act and establishment of the commission that developed the groundwater code. Provisions of the groundwater code, which include controlling the severe overdraft of groundwater and allocating the state's limited groundwater resources, and establishment of Active Management Areas are discussed. Water rights under the code, management plans for each area to reduce groundwater withdrawals, opportunities to conserve water, the provision of assured water supply, measuring groundwater withdrawals and assessment of withdrawal fees, and the nonseverity clause, which states that the entire act will be null and void if any portion of the act is declared unconstitutional, are also addressed. The success of the code and applicability of the code as a model for other states is reviewed. Includes tables, figure.