Key Highlights

  • Active service connections rose 2.4%, or 1,667, to 69,797 at September 30, 2026, from 68,130 a year earlier, with all of the increase coming from organic growth in its service areas.
  • Single-family permit counts in the Phoenix area dropped 5% in Q3, to 4,480, and 10% across nine months, to 15,337; Maricopa moved the other way, up 7% to 175 in the quarter.
  • Roughly 87.5% of the 69,797 active connections sit with just two utilities, GW-Santa Cruz and GW-Palo Verde, a concentration in the customer base.
  • Tucson Water systems acquired for about USD 8.1 million in July 2025 have contributed around USD 1.5 million of annual revenue, and a 5.0% rate increase took hold in July 2026.

Organic Connection Growth to 69,797

Global Water Resources (NASDAQ:GWRS) owns and runs 39 water, wastewater and recycled water systems, mainly around Phoenix and Tucson, Arizona. Its Quarterly Report for the period ended September 30, 2026 was filed on November 3, 2026. Active service connections increased 2.4% year over year to 69,797, and the gain came from organic expansion rather than acquisitions. Revenue and variable costs track connection counts, so the company argues that population and community growth feed directly into earnings. The filing extract holds no income statement, so revenue, Net Income and Dividend figures are not covered in this article.

Maricopa Housing Costs, a State Highway Project and Mixed Permit Trends

Management links its organic growth to comparatively affordable housing in the City of Maricopa, where the September 2026 median home sale price sat 24% below the City of Phoenix. Work on the State Route 347 Improvement Project started in June 2026 and is scheduled for completion in 2029. Permit data tell a mixed story. Multi-family permits equivalent in Maricopa dropped to zero in the third quarter from 278 a year earlier and fell 62% over nine months to 215, while Phoenix-area single-family permits are down 10% so far this year. A university-based consensus panel projects 21,065 single-family permits in 2026 and 21,862 in 2027. Management acknowledges that the pace of new connections and permits has recently slowed.

Rate-Setting Mechanics, the Tucson Acquisition and Growth Threats

The Arizona Corporation Commission sets rates on a historical test year, so cost increases can take time to reach customers. The fixed basic service charge is generally designed to recover about 50% of water revenue, which cushions weather swings. The July 2025 purchase of seven Tucson Water systems, with roughly 2,200 connections and a rate base near USD 7.7 million, pushed Pima County customers above 7,200. Risks include construction slowdowns, inflation, interest rates and Middle East conflict, which did not materially affect the quarter but could in future. The material reviewed has no peer comparison. Watch Maricopa permit trends, fourth-quarter connection counts and the next rate filings.

Where Things Stand

Growth can likely continue, though its pace hinges on housing activity. Global Water Resources (NASDAQ:GWRS) added 1,667 connections organically and benefits from relatively affordable Maricopa homes and the State Route 347 project. Still, nine-month permit counts are lower across the Phoenix area, and management itself describes recent connection activity as slower. Without income figures in the filing extract, the Earnings impact cannot be measured here. Fourth-quarter connection growth is the next signal to watch.