With the ongoing drought surpassing a decade in Arizona, scholars, water managers and decision-makers have heightened attention to the availability of water resources, especially in rapidly growing regions where demand may outgrow supplies or outpace the capacity of the community water systems. Community water system managing entities and the biophysical and social characteristics of a place mediate communities' vulnerability to hazards such as drought and long-term climate change. The arid southwestern Phoenix metropolitan area is illustrative of the challenges that developed urban areas in arid climates face globally as population growth and climate change stress already fragile human-environmental systems. This thesis reveals the factors abating and exacerbating differential community water system vulnerability to water scarcity in communities simultaneously facing drought and rapid peri-urban growth. Employing a grounded, qualitative comparative case study approach, this thesis explores the interaction of social, biophysical and institutional factors as they effect the exposure, sensitivity and adaptive capacity of community water systems in Cave Creek and Buckeye, Arizona. Buckeye, once a small agricultural town in the West Valley, is wholly dependent on groundwater and currently planning for massive development to accommodate 218,591 new residents by 2020. Amid desert hills and near Tonto National Forest in the North Valley, Cave Creek is an upscale residential community suffering frequent water outages due to aging infrastructure and lack of system redundancy. Analyzing interviews, media accounts and policy documents, a narrative was composed explaining how place based factors, nested within a regional institutional water management framework, impact short and long-term vulnerability. This research adds to the library of vulnerability assessments completed using Polsky et al.'s Vulnerability Scoping Diagram and serves a pragmatic need assisting in the development of decision making tools that better represent the drivers of placed based vulnerability in arid metropolitan regions.