CAGRD advances $5.3 million water credit acquisition from Colorado River Indian Tribes

CAGRD advances $5.3 million water credit acquisition from Colorado River Indian TribesA Central Arizona Project committee has recommended approval of a first-of-its-kind partnership to purchase over 9,000 acre-feet of conserved water credits, marking a strategic move to secure supplies amid ongoing Colorado River shortages.

The CAGRD and Underground Storage Committee unanimously recommended board approval for the $5.3 million acquisition of 9,009 acre-feet of ICS credits at $590 per acre-foot.

The credits were generated by the Colorado River Indian Tribes through a reservation farm fallowing program between 2020 and 2022.

The agreement features a two-step payment process, with half the funds due within 30 days of execution and the remainder paid upon delivery of the water.

The deal represents a new type of transaction for the district and includes commitments to explore future water governance and management collaborations with the tribe.

The Central Arizona Water Conservation District's (CAWCD) CAGRD and Underground Storage Committee has unanimously recommended the approval of a $5.3 million partnership agreement to acquire water credits from the Colorado River Indian Tribes (CRIT). During its August 20, 2026 meeting, the committee advanced the deal to purchase 9,009 acre-feet of Extraordinary Conservation Intentionally Created Surplus (EC-ICS) credits. The credits will be acquired at a rate of $590 per acre-foot, totaling $5,315,310, which will be funded through the district's Infrastructure & Water Rights Fund. The ICS credits were generated by CRIT between 2020 and 2022 through a fallowing program on reservation farms, originally conserved as part of the Drought Contingency Plan. Chris Brooks, Senior Policy Analyst with Water Programs and Acquisitions, described the agreement as a "new type of transaction we're engaging in with a new partner," calling it a "very interesting and exciting opportunity." Under the terms of the agreement, CRIT will hold the 9,009 acre-feet of ICS for CAGRD's use. The transaction features a two-step payment structure: 50% of the total ($2,657,655) will be paid within 30 days of the agreement's execution, while the remaining balance will be paid after the ICS is delivered. Brooks noted that the second phase of the partnership—the actual delivery and use of the ICS credits—is still being finalized. "We're trying to find the best option for making use of this water by CAGRD at the most reasonable cost," he told the committee, adding that the district is currently evaluating the necessary approvals and delivery options. According to the meeting packet, the agreement includes flexibility to execute a lease agreement for an equivalent volume of water if the direct transfer of the ICS proves infeasible. Beyond the immediate acquisition, the agreement establishes a foundation for long-term collaboration. The contract commits both CAWCD and CRIT to seek additional mutually beneficial partnerships regarding the protection and development of their respective water resources, as well as the broader environmental needs of the Colorado River. The agreement will now go to the full CAWCD Board of Directors for final approval.