Drying & repair
Category 1, 2 and 3 water: why the source matters
Updated
Short answer
Restoration professionals classify water by contamination. Category 1 is clean (a supply line), Category 2 is gray (a washer or dishwasher discharge), and Category 3 is contaminated (sewage, outside floodwater). The higher the category, the more material must be removed instead of dried.

Category 1 — clean water
From a sanitary source: a broken supply line, a faucet, a water heater or melting ice. Most materials can be dried if work starts quickly.
Category 2 — gray water
Contains some contamination: washing machine or dishwasher discharge, toilet overflow with urine but no feces, aquarium water. Carpet pad is usually removed; surfaces are cleaned.
Category 3 — black water
Grossly contaminated: sewage, toilet backflow with feces, and floodwater from outside, including monsoon runoff. Porous materials it touched are removed and the area is disinfected.
Water gets worse over time
Clean water that sits for a few days, especially in warm conditions, can become Category 2 or 3 as bacteria grow. That's another reason to start drying fast.
Questions
Is monsoon floodwater really Category 3?
Can carpet soaked with gray water be saved?
Who decides the category?
Editorial note: this guide is general information for Arizona homeowners, not professional, legal or insurance advice. For your situation, talk to a licensed contractor and your insurer.