Central Arizona Irrigation and Drainage District Secures Up to 10,000 Acre-Feet Per Year of New Water Supply from Mojave Groundwater Bank
CAIDD and Cadiz, Inc. (NASDAQ: CDZI) said they executed an MOU for CAIDD to buy up to 10,000 acre-feet per year of new water from Cadiz’s Mojave Groundwater Bank. The supply would be delivered to Arizona via an interstate exchange of Colorado River water. Pricing is $850/AFY plus operating and prorated capital charges; term is 50 years, subject to agreements and construction.
How this was made
The 30-second read
Why it matters
If completed, the arrangement would provide CAIDD with firm supplemental groundwater supplies via an interstate exchange of Colorado River water, while advancing Cadiz’s collaboration with the Bureau of Reclamation to evaluate the Mojave Groundwater Bank as a Lower Colorado River Basin resource.
Market read
The deal provides a specific, volume- and term-based pathway for Mojave Groundwater Bank water supply into Arizona, but remains conditional on future agreements and infrastructure buildout.
What to watch
Key execution risks include legal/operational requirements for interstate exchanges under the Law of the River and the timeline/cost of conveyance infrastructure, which could delay or reduce economic impact.
Background
CAIDD and Cadiz announced execution of a Memorandum of Understanding for up to 10,000 acre-feet per year from the Mojave Groundwater Bank to support Arizona water reliability amid expected Colorado River shortages.
Ticker impact
Cadiz executed an MOU to sell up to 10,000 acre-feet/year from its Mojave Groundwater Bank to CAIDD under a 50-year term framework.
Near-term: modest positive bias on deal progress; longer-term: depends on Reclamation/legal approvals and construction/off-take execution.
The article discloses a first Arizona water-district agreement and specific volume/term/pricing structure, but it is an MOU with conditions (off-take/exchange agreements and pipeline construction).
Market effects
Supports the broader narrative that non-Colorado River augmentation projects (groundwater banking + interstate exchange) can gain traction, potentially improving sentiment for water infrastructure developers.
Highlights Arizona’s search for firm supplemental supplies as Colorado River deliveries face drought-driven reductions.
Limited direct global relevance; primarily a US water-resources and infrastructure catalyst.
Counterpoint
Because this is only an MOU, the market may discount it until definitive off-take/exchange agreements, permitting, and pipeline funding are secured.
Key entities
- public_companyCadiz, Inc.
NASDAQ-listed developer of the Mojave Groundwater Bank; subject of the MOU with CAIDD.
- water_districtCentral Arizona Irrigation and Drainage District (CAIDD)
Arizona agricultural water district seeking supplemental supplies; counterparty to the MOU.
- government_agencyU.S. Department of the Interior Bureau of Reclamation
Expected to evaluate legal/operational requirements for interstate exchanges tied to the proposed transaction.
