Arizona actually has a lot of brackish and brine well water that is non-potable.
A lot of it is actually in the Gila Bend area, where people have been trying for decades to figure out something to do with it - there used to be a company that grew "desert shrimp" in ponds using the water. Later, during the housing crisis (for some reason) they tried to make a go of growing algae (in cooperation with one of our universities - maybe ASU) in the ponds by piping CO from diesel aeration pumps into the ponds - then harvesting the algae (which were high in lipids) to make biofuel.
Ultimately, I don't think either of these panned out, but the water is there.