Arizona’s tree nut industry has experienced rapid growth in recent years. Arizona ranks among the top four states in its production of pecans and is one of only three states with commercial production of pistachios. Pecan and pistachio production in Arizona, combined, ranks within the state’s top ten agricultural commodities by cash receipts and state cash receipts for tree nuts are poised to increase in coming years. Tree nut production contributes to local communities, supporting economic activity and jobs in businesses both directly and indirectly linked to tree nut production. Meanwhile, challenges exist around sustainable withdrawal of water resources by a growing industry in groundwater-dependent areas, balancing the livelihoods of rural residents employed in agriculture and agriculture-linked industries with the availability and affordability of groundwater supplies relied upon by residents, agricultural users, and the environment. This report presents an analysis of the tree nut industry’s contribution to Arizona’s economy, including multiplier effects, as well as an overview of the industry, its trends, and water use for tree nut production in Arizona.