But the population pressures are realigning who pays what for the water now, so I expect the alfalfa farms are going to go, and chip fabs will take their place.
The mountainous areas are 'high deserts'. Most of Arizona's water is underground. It's being pumped out faster than it's replaced. Old wells go dry all the time, because newer wells are deeper.
"The Sonoran Desert's bi-seasonal rainfall pattern results in more plant species than any other desert in the world. The Sonoran Desert includes plant genera and species from the agave family, palm family, cactus family, legume family, and numerous others." - https://en.wikipedia.org/wiki/Sonoran_Desert#Flora
> There is a canal system taking the water from the mountains to the drier south where people live.
The Central Arizona Project pumps water straight east from Lake Havasu (738 ft elevation) to Phoenix (1086 ft elevation), then south to Tucson (2388 ft elevation).
https://en.wikipedia.org/wiki/Central_Arizona_Project / https://www.cap-az.com/water/cap-system/water-operations/sys...
The Salt River Project [SRP] buffers water from the rivers that run through the Phoenix area, and diverts the rivers into canals for delivery to the Phoenix area. Before the dams, the Salt and Verde rivers ran year-round. SRP modernized/expanded the Hohokam's ancient canals.
I suspect the ongoing Western US drought would have worsened the water situation.
> The power plant evaporates the water from the treated sewage from several nearby cities and towns to provide the cooling of the steam that it produces.
If you’re referring to the Palo Verde Nuclear Generating Station, it’s downstream of water treatment plants and is effectively evaporating the water from the effluent stream [1], in other words it’s cooled by 100% recycled water. Probably a significant amount of the evaporated water returns to the local area.
[1] https://en.wikipedia.org/wiki/Palo_Verde_Nuclear_Generating_...