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Increasing water demands in the southwestern United States have given rise to aquifer storage and recovery. Faced with high reuse water demands during warm weather months and increased wastewater flow during colder months, the Fountain Hills Sanitary District (Fountain Hills, Arizona) sought a means of managing its water resources. Aquifer Storage and Recovery (ASR) was chosen as a key component in the District's water reuse management system. The system is comprised of tertiary treatment followed by microfiltration, effluent equalization, above ground storage reservoirs, groundwater storage, three injection/recovery wells, and distribution piping and pumping facilities. The system is designed to recharge up to 2 million gallons of Class A effluent per day. The system is also designed to recover a set volume of water on an annual basis. The system became operational in February 2001. In addition to aquifer storage, the system is designed with the flexibility of supplying reuse water as well as groundwater to local users. System automation is handled by means of a supervisory control and data acquisition (SCADA) system requiring limited operator involvement. Operational data will allow the District to analyze demand trends and then optimize their facilities to coincide with expected demands. Includes tables, figure.