Cadiz Lands 10,000 Acre-Feet Annual Water Deal at $850 Per Acre-Foot
CDZI•Cadiz signed an MOU with Central Arizona Irrigation and Drainage District to supply up to 10,000 acre-feet annually from its Mojave Groundwater Bank. The 50-year agreement sets $850 per acre-foot plus operations, maintenance, conveyance and a one-time pipeline capacity charge.
1. MOU Details and Supply Volume
Cadiz and Central Arizona Irrigation and Drainage District executed a non-binding Memorandum of Understanding for the purchase and sale of up to 10,000 acre-feet per year of groundwater from Cadiz’s Mojave Groundwater Bank via an interstate exchange mechanism.
2. Pricing and Term Structure
Under the proposed 50-year agreement, CAIDD will pay an initial volumetric charge of $850 per acre-foot in 2025 dollars plus operations, maintenance, and conveyance costs, along with a one-time prorated capital charge for dedicated pipeline capacity.
3. Regulatory Collaboration and Strategic Impact
The transaction advances Cadiz’s collaboration with the Bureau of Reclamation to evaluate interstate exchange requirements under the Law of the River and could establish a template for integrating non-Colorado River supplies into Lower Basin water management, potentially unlocking long-term revenue growth for Cadiz.
