CAIDD and Cadiz Inc. sign memorandum of understanding for new water supplies to support the long-term water reliability in Arizona
/PRNewswire-HISPANIC PR WIRE/ — Central Arizona Irrigation and Drainage District (CAIDD) and Cadiz, Inc. (NASDAQ: CDZICDZIP) today announced the signing of a memorandum of understanding (MOU) for the purchase and sale of up to 10,000 acre-feet per year (AFY) of new water supply from the Cadiz Mojave Groundwater Bank in San Bernardino County, California.
The MOU represents the Mojave Groundwater Bank’s first water supply agreement with an Arizona water district and provides access to a new source of water supply for the state, at a time when prolonged drought and shortages are expected to reduce Colorado River water deliveries to farms, communities, businesses and tribes throughout the lower basin. CAIDD is one of the largest agricultural water districts in central Arizona, serving approximately 87,600 irrigated acres in Pinal County. Once the sale and exchange agreements are concluded and pipeline installations are completed, the MOU will allow for the delivery of up to 10,000 AFY of groundwater supplies from the Mojave Groundwater Bank to CAIDD via an interstate Colorado River water exchange.
For CAIDD, this agreement ensures access to firm supplemental supplies that support the long-term reliability of water deliveries to its agricultural customers. The transaction further advances Cadiz’s collaboration with the U.S. Department of the Interior’s Bureau of Reclamation (“Reclamation”) under a memorandum of understanding dated September 2025 to evaluate the Mojave Groundwater Bank as a new water storage and supply resource for the lower Colorado River Basin. As part of that collaboration, Reclamation is expected to evaluate the proposed interstate exchange to identify the legal and operational requirements necessary to implement and account for interstate exchanges under the River Act.
CAIDD’s proposed transaction is consistent with Reclamation’s current efforts to evaluate interstate exchange mechanisms that could integrate new water supplies developed outside the Colorado River system into lower basin water management. Earlier this year, Reclamation entered into an MOU with the San Diego County Water Authority and water agencies in California, Arizona and Nevada to evaluate interstate exchanges involving desalination, recycled water and other flow augmentation projects. The proposed CAIDD transaction is expected to be reviewed by Reclamation under a similar exchange mechanism, under which non-Colorado River water supplies could be made available to Arizona through a Colorado River water exchange.
Under the proposed terms, CAIDD would obtain the rights to purchase up to 10,000 AFY of conserved groundwater for an initial period of 50 years with renewal options. The initial price would include a volume charge of $850 per AFY (at the 2025 exchange rate), plus prorated operation, maintenance and energy costs for transportation to the Colorado River Aqueduct, as well as a one-time prorated capital charge per acre-foot for dedicated pipeline capacity. The parties intend to work cooperatively with Reclamation and lower basin water agencies to enter into necessary interstate exchange agreements and pursue available federal and state resources to reduce infrastructure costs and deliver new water supplies to Arizona at the lowest practical cost possible.
Derek McEachern, CAIDD General Administrator: “Agriculture in Arizona needs new supplies, not just more severe cuts to existing supplies. The Mojave Groundwater Bank offers CAIDD a pathway to firm, drought-resistant water that can help protect farms, families and the rural economy in Pinal County. We are pleased to work with Cadiz to advance a practical solution at a time when Colorado River water shortages continue to pose a challenge for Arizona’s farming communities.”
Rep. Steve Montenegro, LD 29, Speaker of the Arizona House of Representatives: “The Mojave Groundwater Bank represents the type of innovative solution that will be essential to improving Arizona’s long-term water supply. Supporting Arizona’s growing high-tech and advanced manufacturing industries, its military bases and its agricultural production remains one of our top priorities. By creating innovative solutions to finance and develop infrastructure projects for increasing water flow, Cadiz offers a model of what is possible when we work together to address our most pressing water challenges. pressing”.
Senator Tim Dunn, LD 25, vice chairman of the Senate Natural Resources Committee: “Arizona should consider all opportunities to add new water supplies, other than those from the Colorado River, to the regional water portfolio through interstate exchanges. Projects like the Mojave Groundwater Bank are exactly the kind of innovative, supply-focused solutions Arizona needs to strengthen long-term water reliability.”
Senator TJ Shope, LD 16, President Pro Tempore and Chairman of the Senate Natural Resources Committee: “Water challenges in Arizona are real, and securing our future means supporting solutions that deliver equally real results. For Pinal County, developing new water supplies means keeping farms productive, protecting jobs, and sustaining rural communities. CAIDD’s agreement with Cadiz is a practical step toward bringing new water resources to Arizona at a time when we need every tool available.”
Representative Gail Griffin, LD 19, chairwoman of the House Committee on Natural Resources, Energy and Water: “The future of water in Arizona depends on developing new sources of supply and expanding groundwater recharge to support the communities and industries that drive our economy. CAIDD’s agreement with Cadiz to provide water to Arizona through interstate transfer and exchange is an example of the type of mutually beneficial solutions Arizona needs. We encourage the implementation of locally powered solutions that help Arizona manage its water resources as it continues to grow.”
Rep. Chris Lopez, LD 16, vice chair of the House Natural Resources, Energy and Water Committee. “Pinal County agriculture has played a critical role in Arizona’s history and economy. It has also been one of the areas hardest hit by drawdowns on the Colorado River, facing shortages long before many other water users. By entering into this strategic agreement with Cadiz, CAIDD can bring vital water resources to this arid area and restore hope and prosperity to all who call it home.”
Andy Mejia, president of California’s Lytton Rancheria, a federally recognized Native American tribe: Lytton Rancheria has made a long-term commitment to supporting practical, lasting solutions to some of the most pressing resource challenges facing California and the Southwest. As a tribal government, we take a long-term view of the resources that sustain our communities. This includes supporting projects that strengthen water security, improve drought resilience, and strengthen the stability of regions that are deeply connected to California’s broader water system.
Susan Kennedy, President and CEO of Cadiz, Inc.: “The future of the Colorado River Basin depends on developing new water supplies, not just managing shortages. CAIDD is taking a leadership role by investing in new water supplies that will protect Arizona’s future, strengthen the state’s economy, and reduce pressure on the Colorado River for generations to come.”
About the Mojave Groundwater Bank
The Mojave Groundwater Bank is a new groundwater storage and water supply project located in San Bernardino County, California, developed by Cadiz, Inc. in collaboration with Lytton Rancheria of California, a federally recognized Native American tribe. Once fully developed, the project is anticipated to provide more than 2.5 million acre-feet of supplemental water supplies to the lower Colorado River Basin and up to 1 million acre-feet of groundwater storage capacity. The project is located within the Fenner Valley Aquifer System, a naturally recharged alluvial groundwater basin located in the eastern Mojave Desert in California. The MGB is currently permitted to deliver approximately 50,000 acre-feet per year of supplemental water supply, including about 30,000 acre-feet per year that could be made available to Arizona buyers through interstate exchanges in the Colorado River system. For more information, visit www.mojavegroundwaterbank.com.
About the Central Arizona Irrigation and Drainage District
The Central Arizona Irrigation and Drainage District (CAIDD) is one of the largest agricultural water districts in central Arizona, serving approximately 87,600 irrigated acres in Pinal County. CAIDD distributes Colorado River water through the Central Arizona Project and other water resources to sustain one of Arizona’s most productive agricultural regions. The district is committed to developing innovative water management strategies and new water supplies to ensure long-term water reliability for Arizona agriculture. For more information, visit https://ed4.biz/about-caidd/.
About Cadiz, Inc.
Cadiz, Inc. (NASDAQ: CDZI) is a water solutions and natural resources company developing long-term solutions for the supply, storage, transportation and treatment of water for communities, businesses, farmers and public agencies throughout the Southwest. Cadiz, founded in 1983, owns approximately 45,000 acres of land and 220 miles of pipeline assets in California’s Mojave Desert. Its assets include Cadiz Ranch, the largest agricultural operation in San Bernardino County; the Mojave Groundwater Bank, one of the largest groundwater storage and new water supply projects in the lower Colorado River Basin; and ATEC Water Systems, which supplies specialized groundwater treatment technology throughout the western United States. For more information, visit https://www.cadizinc.com.
Forward-looking statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements They can generally be identified by words such as “may”, “will”, “intend”, “anticipate”, “believe”, “estimate”, “project”, “forecast”, “expect”, “plan” and “propose”. These forward-looking statements include, but are not limited to, statements regarding the expectation that CAIDD and Cadiz (the “Company”) will enter into a definitive purchase agreement; completion of construction of the Company’s Mojave Groundwater Bank and Southern Pipeline; CAIDD’s potential purchase of water supply from the Mojave Groundwater Bank; the planned investment and financing for the development of the Mojave Groundwater Bank; and meeting the legal and operational requirements necessary for the Mojave Groundwater Bank to serve as a new water storage and supply resource for the lower Colorado River Basin, including requirements to implement and account for interstate exchanges in accordance with the River Act. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Factors that could cause actual results or events to differ materially from those reflected in the Company’s forward-looking statements include the risks, uncertainties and other factors described in the Company’s filings with the SEC, including its annual report on Form 10-K for the year ended December 31, 2025, as well as subsequent filings under the Exchange Act and the Securities Act. The Company undertakes no obligation to publicly update any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future events or otherwise, except as required by law.
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FUENTE Cadiz, Inc.; Central Arizona Irrigation and Drainage District