CAIDD and Cadiz Inc. execute MOU for new water supplies to support  long-term water reliability in Arizona 

PHOENIX and CADIZ, Calif., July 2, 2026 /PRNewswire/ — Central Arizona Irrigation and Drainage District (“CAIDD”) and Cadiz, Inc. (NASDAQ: CDZI, CDZIP) today announced execution 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 Cadiz’s Mojave Groundwater Bank in San Bernardino County, California.

The MOU represents the first agreement for water supply from the Mojave Groundwater Bank with an Arizona water district and provides access to a new source of water supply for Arizona at a time when prolonged drought and shortages are expected to reduce deliveries of Colorado River water to farms, communities, businesses, and tribes throughout the Lower Basin. CAIDD is one of central Arizona’s largest agricultural water districts, serving approximately 87,600 irrigated acres in Pinal County. Upon completion of off-take and exchange agreements and construction of pipeline facilities, the MOU would enable delivery of up to 10,000 AFY of groundwater supplies from the Mojave Groundwater Bank to CAIDD through an interstate exchange of  Colorado River water.

For CAIDD, the agreement provides access to firm supplemental supplies that support the long-term reliability of water deliveries to its agricultural customers. The transaction also advances Cadiz’s collaboration with the U.S. Department of Interior Bureau of Reclamation (“Reclamation”) under a September 2025 Memorandum of Understanding to evaluate the Mojave Groundwater Bank as a new water supply and storage 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 Law of the River.

The proposed CAIDD transaction is consistent with current Reclamation 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 augmentation projects. The proposed CAIDD transaction is expected to be reviewed by Reclamation under a similar exchange mechanism, through which non-Colorado River water supplies could be made available to Arizona through an exchange of Colorado River water.

Under the proposed terms, CAIDD would secure rights to purchase up to 10,000 AFY of conserved groundwater for an initial 50-year term with renewal opportunities. Initial pricing would include a volumetric charge of $850 per AFY (2025 dollars) plus operations, maintenance, and pro-rated power costs for conveyance to the Colorado River Aqueduct, and 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 establish the 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.

Derek McEachern, General Manager, CAIDD: “Arizona agriculture needs new supplies, not just deeper cuts to existing supplies. The Mojave Groundwater Bank gives CAIDD a path to secure firm, drought-resilient 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 shortages continue to challenge agricultural communities across Arizona.”

Representative Steve Montenegro, LD 29, Speaker, Arizona House of Representatives: “The Mojave Groundwater Bank represents the type of innovative solution that will be essential to enhancing Arizona’s long-term water supply. Supporting Arizona’s growing high-tech and advanced manufacturing industries, military bases, and agricultural production continues to be a top priority. By creating innovative solutions to finance and construct water augmentation infrastructure projects, Cadiz provides a model for what’s possible when we work together to address our most pressing water challenges.” 

Senator Tim Dunn, LD 25, Vice Chair, Senate Natural Resources: “Arizona must look at every opportunity to bring new, non-Colorado River supplies into the regional water portfolio through interstate exchange. 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 & Chair Senate Natural Resources:  “Arizona’s water challenges are real, and securing our future means backing solutions that deliver real results. For Pinal County, developing new sources of water supply 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, Chair, House Natural Resources, Water and Energy Committee: “Arizona’s water future 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 Arizona water through interstate transfer and exchange is an example of the type of win-win solutions Arizona needs. We invite locally driven solutions that will help Arizona manage its water resources while continuing to grow.”

Representative Chris Lopez, LD 16, Vice Chair, House Natural Resources, Water and Energy Committee. “Pinal County agriculture has played an important role in Arizona’s history and economy. It has also been one of the hardest hit by reductions in the Colorado River, taking shortages long before many other water users. By entering into this strategic agreement with Cadiz, CAIDD can bring vital water resources to this parched area and restore hope and prosperity for all who call it home.”

Andy Mejia, Chairperson of the Lytton Rancheria of California, a federally recognized Native American Tribe: Lytton Rancheria has made a long-term commitment to supporting practical, durable 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. That includes supporting projects that strengthen water security, improve resilience in the face of drought, and bolster the stability of regions that are deeply connected to California’s broader water system.

Susan Kennedy, Chair and CEO, Cadiz, Inc.: “The future of the Colorado River Basin depends on developing new water supplies, not simply managing scarcity. 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 water supply and groundwater storage project in San Bernardino County, California, being developed by Cadiz, Inc. in partnership with Lytton Rancheria of California, a federally recognized Native American Tribe. When fully developed, the project is expected 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 in California’s eastern Mojave Desert. The MGB is currently permitted to deliver approximately 50,000 acre-feet per year of supplemental water supply, including approximately 30,000 acre-feet per year that could be made available to Arizona off-takers through interstate exchanges in the Colorado River system. To learn more, please visit www.mojavegroundwaterbank.com.

About Central Arizona Irrigation and Drainage District

The Central Arizona Irrigation and Drainage District (CAIDD) is one of central Arizona’s largest agricultural water districts, serving approximately 87,600 irrigated acres in Pinal County. CAIDD delivers Colorado River water through the Central Arizona Project and other water resources to support one of Arizona’s most productive agricultural regions. The District is committed to developing innovative water management strategies and new water supplies to ensure the long-term reliability of water for Arizona agriculture. For more information, please visit https://ed4.biz/about-caidd/.

About Cadiz, Inc.

Cadiz, Inc. (NASDAQ: CDZI) is a water solutions and natural resources company developing long-term water supply, storage, conveyance and treatment solutions for communities, businesses, farmers and public agencies across the Southwest. Founded in 1983, Cadiz 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 new water supply and groundwater storage projects in the Lower Colorado River Basin; and ATEC Water Systems, which provides 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 can be identified by the use of words such as “would,” “will,” “intends,” “anticipates,” “believes,” “estimates,” “projects,” “forecasts,” “expects,” “plans,” and “proposes.” 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 offtake agreement; completion of construction of the Mojave Groundwater Bank and the Company’s Southern Pipeline; the potential purchase of water supply by CAIDD from the Mojave Groundwater Bank; expected investment in and financing of the development of the Mojave Groundwater Bank; and satisfaction of legal and operational requirements necessary for the Mojave Groundwater Bank to serve as a new water supply and storage resource for the Lower Colorado River Basin, including requirements to implement and account for interstate exchanges under the Law of the River. 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 SEC filings including its annual report on Form 10-K for the year ended December 31, 2025 and subsequent Exchange Act and Securities Act filings. The Company undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise, except as required by law.

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SOURCE Cadiz, Inc.; Central Arizona Irrigation and Drainage District