Arizona - if you plant in the ground, you need to have water rights, which are unaffordable. If you were to use your well, you would need to apply for surface water rights. However, you can buy water, and as long as they are in pots, you can get a business license. And yes, you need a business license to sell at farmers' markets.
This is probably not the most realistic endeavor I've ever taken, so I'm trying to figure out how many years it would take to break even.