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Small Arizona town of Salome faces uncertain water future

Water company says one of two wells in danger of running dry
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SALOME, AZ — Mick Darcey has a front-row seat to the warning signs of water problems in this unincorporated community of Salome, an hour west of Wickenburg.

From his yard, he sees a water storage tank that’s more than a century old and owned by the Salome Water Company. He’s been a customer for more than 20 years and uses a gauge to track water pressure at his house. The gauge registered 18 pounds per square inch on a recent day.

“Most people in the city have 50 to 60 pounds,” he said.

Low pressure means the flow can slow to a trickle if one person washes dishes and another person showers.

But the concerns go beyond comfort.

The town’s main water supply faces an uncertain future. Salome Water Company officials have told state regulators they are barely able to meet demand. They said one of their two wells will go dry within six months.

The remaining well does not produce enough water to supply the 150 homes and businesses that are customers. Officials warn the company is already operating at a deficit and will quickly go bankrupt if they have to haul water.

“My biggest concern if this isn’t rectified: the town’s going to run dry,” Darcey said.

Just across town, local farmer Kelly James has an office off U.S. Highway 60, the main road bisecting the community. He says his 500-acre farm is supplied by a private well and has plenty of water. But James is also on the Salome Elementary Governing Board, which is served by the water company, and impacted by the shortages.

“We get notifications that like, 'Hey, you know, you can't irrigate the kids’ soccer field because we're running low on water,’” he said.

There’s no water for the soccer field because the town’s main water system needs repairs and a new well. Company officials estimate the price tag at more than $2 million.

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Salome Water Company officials declined ABC15’s request for an interview, but they spoke at length about the water problems at a recent hearing before the Arizona Corporation Commission, which regulates the water utility.

In December, they asked the commission to approve an emergency rate hike to fund system repairs, a new well, and replace a 250,000-gallon water storage tank.

“We understand there’s a lot to fix,” said Steve Wene, the company’s attorney. “Nobody can take care of this in one bite.”

Documents filed with state regulators say the company’s two wells produce only 73,000 gallons per day – not enough to meet customer demand during peak summer months. They have discontinued bulk-water sales and stopped irrigating the high school and elementary school fields.

At the hearing, the commission approved $24 in temporary increases. But commissioners didn’t give the company everything it requested. Part of the increase will go toward installing a pipeline to a private well that the owner has agreed to lease for two years. The leased well will help meet current demand, according to the company.

But that won’t solve all the issues.

“This is quite a disaster,” said Commissioner Lea Márquez Peterson.

Among the other issues identified by state regulators:

  • The company has failed to file required annual reports with the commission since at least 1984. The commission has ordered the company to file reports for the last two years.
  • The Arizona Department of Environmental Quality says the water storage tank must be replaced, and the state is suing the water company owner for failing to replace the tank. The tank towers over 70 feet and sits near railroad tracks, and it was once damaged when a rail car derailed. The rusty tank dates back to the early 1900s and was once used by the railroad to fill steam engines.
  • The commission seven years ago approved an $8 monthly emergency surcharge that was only supposed to last 18 months. But the surcharge never went away; customers are still paying it.
  • The company owes property taxes of $48,801. Officials testified during the hearing the Salome Water Company “is currently insolvent,” according to documents.  It does not generate enough income to pay its bills and expenses.

Commissioners warned the company must come back within six months with long-term solutions. Otherwise, the commission may take the rare step of appointing an interim manager.
"This thing is terrible,” said then-Commission Chairman Jim O’Connor at the hearing. He urged the owner to sell.

The current owner is Stacy Romero, a Salome resident. She inherited the company from long-time owner Bill Farr after he died in 2023. She did not return calls or emails from ABC15.

Farr operated the company out of his house. He also owned a local bar. Some people would pay their water bill at the bar.

The new owner brought in Jim Downing, a long-time Salome resident and engineer who designs water systems, to help. The company is also using the Tucson-based Southwestern Utility Management to provide field services and billing.

“What we have is a whole community who's been working together to try to assist this company to get back on its feet,” Wene said.

He said the work has been challenging.

"We had to recreate everything,” he said. “All we had was a customer list, and that wasn't accurate.”

Wene told commissioners the company is also looking into possible state grants. He said the estimated $2 million in repairs would be too much for customers to absorb.

James, the local farmer and school board member, said the state needs to pay for solutions while still allowing the water company to stay under local control.

“You can't expect our little community, our people, and this little town to have a massive rate increase to pay for this massive update,” he said.

Email ABC15 Investigator Anne Ryman at: anne.ryman@abc15.com, call her at 602-685-6345, or connect on X, formerly known as Twitter, and Facebook