Central Arizona Groundwater Replenishment District

What Central Arizona Groundwater Replenishment District does

Central Arizona Groundwater Replenishment District (CAGRD) is a special governmental district created by Arizona Senate Bill 1425 in 1993 and operated within the Central Arizona Water Conservation District (CAWCD), the parent entity of the Central Arizona Project. Its statutory function is to replenish, through artificial aquifer recharge, the excess groundwater withdrawn by its members in the Phoenix, Pinal, and Tucson Active Management Areas, thereby providing the mechanism by which post-1995 residential subdivisions and water providers comply with Arizona's Assured Water Supply rules. CAGRD operates two membership structures: Member Lands (individual subdivisions enrolled via recorded covenants and billed through county property tax assessments) and Member Service Areas (cities, towns, and private water companies enrolled via resolution and billed through monthly water bills). Annual replenishment volume has averaged 32,190 acre-feet over 2014–2023 and was slightly above 37,000 AF in 2024; CAGRD has met its replenishment obligation within the statutory three-year window 100% of the time.

The district's revenue model combines recurring replenishment assessments (usage-based, tied to excess groundwater over each property's Groundwater Allowance), recurring annual membership dues, one-time enrollment and activation fees, and bond proceeds (first exercised in 2019). CAGRD has assembled a diversified water supply portfolio of approximately 77,141 acre-feet annually and roughly 335,000 acre-feet accrued in Replenishment Reserve accounts, drawn from CAP entitlements (M&I, Indian GRIC, NIA, NIA WMAT), effluent partnerships (notably the Liberty Utilities Sustainable Effluent to Aquifer Project providing a drought-proof 2,400 AF/year through 2116), Long-Term Storage Credit purchases from the Bureau of Reclamation and the Tohono O'odham Nation, and tribal leases with the Gila River Indian Community, Fort McDowell Yavapai Nation, and White Mountain Apache Tribe. The Arizona Department of Water Resources approved CAGRD's 2025 Plan of Operation on December 22, 2025, authorizing continued replenishment, acquisition, and financial activities across all three AMAs through a 100-year planning horizon.

Name

Central Arizona Groundwater Replenishment District

Legal name

Central Arizona Groundwater Replenishment District

Website

https://cagrd.com

Company type

Private

Founded year

1993

Operating status

Operating

Headcount range

11–50 employees

Short description

CAGRD is an Arizona government special district that replenishes groundwater aquifers on behalf of its members in the Phoenix, Pinal, and Tucson Active Management Areas, providing the statutory mechanism for post-1995 residential subdivisions and water providers to comply with Arizona's Assured Water Supply rules.

Ownership category

akta.pro rank

Product category

Groundwater Replenishment Services

NAICS

Water Supply and Irrigation Systems (221310), Water, Sewage and Other Systems (2213), Administration of Environmental Quality Programs (9241)

SIC

Water Supply (4941)

akta.pro primary industry

Managed Aquifer Recharge (MAR) & Recovery Utilities (ASR/ASTR) (EUANAGAF)

akta.pro secondary industries

Water Resources Administration (Watersheds, Rivers, Groundwater) (BPAIAMAE), Managed Aquifer Recharge (MAR) & Aquifer Storage and Recovery (ASR) Assessments (EUAHAFAL)

Keywords

• Groundwater replenishment services
• Aquifer recharge programs
• Assured water supply
• Water supply acquisition
• Membership enrollment services

Headquarters

HQ city

Phoenix

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Infrastructure, Personnel, Others

Revenue model

1. Replenishment Assessments: Annual replenishment assessment collected through property tax bills for Member Lands. Assessment is based on the volume of groundwater used at the property that exceeds the Groundwater Allowance and needs to be replenished. Rate approved annually by CAWCD Board based on projections of water demand, CAP delivery costs, and administrative costs.
2. Annual Membership Dues: Annual membership dues collected from each lot in Member Lands or from entire service area for Member Service Areas. Even if water provider converts entirely from groundwater to renewable supplies, property owners remain responsible for Annual Membership Dues.
3. Enrollment and Activation Fees: One-time fees for enrolling new properties or subdivisions in CAGRD. Covers administrative costs of membership activation.
4. Water Supply Acquisition Funding: CAGRD water supply acquisitions are entirely funded by and solely benefit current and future CAGRD members through annual assessments and a portion of the enrollment and activation fees, not through CAP water rates.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels7 records

Core offering

CAGRD replenishes groundwater aquifers on behalf of its members in Arizona's Phoenix, Pinal, and Tucson Active Management Areas through artificial recharge using renewable water supplies. It enrolls individual subdivisions (Member Lands) and water providers (Member Service Areas) to satisfy Arizona's Assured Water Supply rules and acquires a diversified portfolio of water supplies (CAP entitlements, effluent, tribal leases, Long-Term Storage Credits) to meet statutory replenishment obligations.

Product overview

CAGRD operates as a single integrated water management service rather than a platform-plus-modules architecture. The district provides groundwater replenishment services to its members through several interconnected programs: the core Groundwater Replenishment Services (aquifer recharge using renewable water supplies), Member Land and Member Service Area Enrollment Programs (voluntary membership structures), the Water Supply Acquisition Program (diversified portfolio of CAP entitlements, effluent, and long-term storage credits), and the Conservation Program (incentives for water-efficient construction). Supporting functions include the Annual Water Provider Reporting System and Plan of Operation documents. The organization is a division of Central Arizona Project, governed by the CAWCD Board of Directors.

Differentiator

Problem solved

Functional benefit

Products and services

• Groundwater Replenishment Services CAGRD's primary service of replenishing groundwater aquifers on behalf of its members in the Phoenix, Pinal, and Tucson Active Management Areas through artificial recharge using renewable water supplies, satisfying statutory obligations within a 3-year window.
• Member Land Enrollment Program Voluntary enrollment program for individual subdivisions developed after February 1995, where owners record covenants with CAGRD to be subject to replenishment assessments and comply with Arizona's Assured Water Supply rules.
• Member Service Area Enrollment Voluntary enrollment program for cities, towns, or water companies where the service area adopts a resolution to join CAGRD and executes an agreement with CAWCD; replenishment assessments are collected through monthly water bills.
• Water Supply Acquisition Program Program focused on acquiring a diverse portfolio of water supplies through voluntary, market-based transactions including CAP entitlements, effluent agreements, and Long-Term Storage Credits to meet replenishment obligations.
• Conservation Program Water conservation program offering incentives for WaterSense-certified new home construction, providing rebates for water-efficient products, and promoting water conservation among CAGRD members to reduce replenishment obligations.

Quantifiable outcome

• Replenishment obligation met within statutory 3-year window 100% of the time
• +3 more outcomes

Named customers2 records

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature2 records

Partnerships

Six partnerships are on record, tiered core, major and strategic.

• Liberty UtilitiescoreStrategic or Co-development Partner · 1 January 2017Ground-breaking public-private partnership developed and built the state's first reclaimed-water recharge facility (now Sustainable Effluent to Aquifer Project) in Goodyear. Provides CAGRD with drought-proof 100-year water supply of 2,400 acre-feet annually from 2017 to 2116. Upgrades in 2020 enhanced recharge capacity. CAGRD gets affordable water supply while Liberty Utilities gets cost-effective effluent management.
• Central Arizona Project (CAP)coreStrategic or Co-development PartnerCAGRD is a special function of Central Arizona Project, operated by Central Arizona Water Conservation District (CAWCD). CAP provides water supply infrastructure including the canal system. CAWCD Board of Directors (15 members) governs CAGRD.
• Gila River Indian CommunitymajorTechnology or IntegrationCAP Indian (GRIC) water supply arrangement providing 15,000 acre-feet annually from 2020 to 2044 under 25-year exchange agreement. Also includes Non-Indian Agricultural (NIA) priority allocation of 18,185 acre-feet. Multiple agreements including CAP Water Lease, Stored Water Recovery and Exchange Agreement, and Contributed Funds Agreement.
• Tohono O'odham NationmajorTechnology or IntegrationMultiple Purchase and Sale Agreements for Long-Term Storage Credits (LTSCs) executed over multiple years (2020, 2022, 2023, 2025). Provides water supply acquisitions for CAGRD's replenishment program.
• Bureau of ReclamationmajorTechnology or IntegrationPurchase and Sale Agreement for Long-Term Storage Credits (LTSC) executed June 2015 and October 2025. Federal partnership for water supply acquisitions supporting CAGRD replenishment obligations.
• EPA WaterSensestrategicGTM or Marketing PartnerCAGRD and CAP are proud EPA WaterSense partners. Offers WaterSense 2.0 certification incentives for new home construction in qualifying CAGRD locations. Promotes water-efficient products and practices.

Scale indicators9 records

Recent moves6 records

Expansion highlights5 records

Others

• Bureau of Reclamation: Federal agency managing Colorado River water deliveries and major water infrastructure across the western U.S. Comparable as CAGRD's federal partner for long-term storage credit purchases and the upstream manager of CAP water allocations that underpin CAGRD's replenishment portfolio.
• Arizona Department of Water Resources: State regulatory body that oversees Active Management Areas and approves CAGRD's 10-year Plan of Operation. Comparable as the state-level water resources authority that CAGRD interacts with and whose policy direction shapes CAGRD's operating environment.

Broad incumbents

• Salt River Project: Arizona utility providing water and power across central Arizona, including reservoir and groundwater management. Comparable as a major Arizona water utility operating in the same Phoenix metropolitan geography and managing water portfolios that interact with CAGRD's replenishment mission.
• Central Arizona Project (CAWCD): CAGRD's parent organization; the larger water delivery entity that delivers Colorado River water through central Arizona. Comparable as the overarching Arizona water infrastructure provider whose service area and canal system CAGRD operates within.

Regional players

• Phoenix Water Services: Municipal water utility serving the City of Phoenix within the Phoenix Active Management Area. Comparable as the largest municipal water provider in CAGRD's primary service territory and a key Member Service Area counterparty.
• EPCOR (Arizona): Canadian-owned water utility serving communities across Arizona including in the Phoenix and Tucson AMAs. Comparable as a private water provider that participates in CAGRD as a Member Service Area and competes in Arizona water service delivery.
• Tucson Water: Municipal water utility operated by the City of Tucson, operating within the Tucson Active Management Area. Comparable as a major municipal water provider enrolled with CAGRD as a Member Service Area to meet groundwater replenishment obligations.
• Liberty Utilities (Arizona): Water and wastewater utility operating in Arizona and CAGRD's partner on the Sustainable Effluent to Aquifer Project. Comparable as an Arizona water utility whose operations and effluent management directly integrate with CAGRD's replenishment supply portfolio.

Direct peers

• Inland Empire Utilities Agency: California water agency managing groundwater recharge and recycled water programs in the Chino Basin. Comparable as a regional water agency using aquifer recharge and effluent-to-aquifer projects to replenish groundwater basins under a state-mandated management framework analogous to CAGRD's.
• Water Replenishment District of Southern California: California's groundwater replenishment district responsible for managing and replenishing groundwater basins in Los Angeles and Orange Counties. Most directly comparable to CAGRD — both are statutorily created replenishment districts funded by member assessments to meet groundwater replenishment obligations under state law.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks5 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/CentralArizonaProject
• Xtwitter.com/CAParizona
• YouTubeyoutube.com/user/CAPH20
• Instagraminstagram.com/caparizona

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Central Arizona Groundwater Replenishment District