Attorney General Mayes Announces Precedent-Setting Settlement with Riverview Dairy to Reduce Groundwater Usage, Securing $11M for Well Drilling, Water-Hauling and Groundwater Access

WILLCOX –Attorney General Kris Mayes today announced a settlement agreement between Arizona and Riverview, LLP, to reduce Riverview’s groundwater usage and deliver $11 million to impacted residents for well-drilling, water-hauling and groundwater access. This groundwater access settlement is the first of its kind in Arizona and across the country. The settlement includes new water conservation and groundwater access practices implemented by Riverview, to fallow or transition to a different use 2,000 acres of irrigated farmland and establish two $5.5 million funds to help ensure continued access to potable water for residents of the Sulphur Springs Valley in Cochise County.

“This settlement sets a new precedent in Arizona—one where businesses commit to being good neighbors to the communities they operate in and make meaningful efforts to reduce pumping of our most precious resource —groundwater,” said Attorney General Mayes. “As a daughter of rural Arizona, I can’t imagine anything more important than paving a new way forward to conserve groundwater and protect a future for the rural communities like Willcox and the Sulphur Springs Valley that define Arizona.”

In the agreement, the Attorney General and Riverview emphasize that agriculture is a cornerstone of the valley’s economy and heritage, but that groundwater levels continue to decline and residents in the Sulphur Springs Valley continue to face resulting challenges.

“The legislature has failed for years to protect the residents of rural Arizona from groundwater depletion, so my office has stepped in to do it for them,” said Attorney General Mayes. “Today’s announcement is an immediate and concrete action to address the increasingly dangerous depletion of groundwater in rural parts of our state.”

New Water Conservation

Pursuant to the agreement, Riverview will fallow a total of 2,000 acres of irrigated farmland or transition the acreage to a different land use, such as grazing, habitat, or other non–row-crops over the next 12 years. Riverview will have strict reporting requirements on the acreage reduction. Riverview is prohibited from selling or transferring ownership of the land without maintaining the non-row crop use of the land or fallowing an equivalent number of substitute acreage. Riverview also agrees to continue its best management practices for its irrigated agricultural operations, including the use of pivots, drop hoses, and low energy precision application systems, pumps with variable frequency drives, pivot control and automation, and other superior practices.

$11 Million for Well Drilling, Water-Hauling and Groundwater Access

Riverview has agreed to deposit $11 million into two funds to help ensure Sulphur Springs Valley residents have continued access to potable water. These funds will provide assistance for replacement of groundwater wells and emergency or interim residential water supply measures and support for existing community water systems. The Riverview Funding Commitment will be directed to residents impacted within a 1.6-mile radius of any Riverview Irrigation Well. The Sulphur Springs Water Fund will assist residents impacted outside a 1.6-mile radius of any Riverview Irrigation Well.

Regardless of proximity to any Riverview Irrigation Well, both funds are available to specifically designated schools located outside the 1.6-mile radius of a Riverview Irrigation Well: the Ash Creek Elementary School, Elfrida Elementary School, Valley Union High School, Cochise Elementary School, and McNeal Elementary School. Both funds encourage multi-party applications from residents working together to jointly construct a shared water systems to encourage efficient water infrastructure investment. To ensure compliance with the agreement, both funds will provide periodic reports to the Arizona Attorney General’s office.

Sulphur Springs Water Fund (SSWF) - $5.5 Million

This $5.5 million in funding for groundwater access for those outside of a 1.6-mile radius will be administered by a third-party nonprofit and a Review Panel of five members appointed by the Sulphur Spring Alliance, the Lincoln Institute of Land Policy’s Babbitt Center for Land and Water Policy, the Arizona State University Sustainability Institute, the Water Resources Research Center of the University of Arizona, and the nonprofit. This money will be prioritized for impacted individuals to replace or re-drill groundwater wells and provide access to tank systems, water fill stations, and water-hauling. This fund will be available to receive applications beginning April 8, 2026. Other than making the required contributions, Riverview will not have any approval, veto, or control over the Sulphur Springs Water Fund uses, policies, awards, or administration.

Riverview Funding Commitment - $5.5 Million

This $5.5 million for groundwater access for those inside a 1.6-mile radius will be administered by Riverview in accordance with the terms of the agreement. This fund will also support the construction and installation of replacement groundwater wells, tank systems, water fill stations, and water-hauling services for residential use, and the funding and expansion of existing community water systems. The money will be available for impacted residents, schools, and special districts, water companies, or municipalities that provide domestic water services.

Riverview has agreed to a schedule of contributions to this fund over the next 20 years, with acceleration measures if there are outstanding claim requests.

A copy of the settlement can be found here.

Community Members and Arizona Water Leaders Statements:

“Thank you to Attorney General Kris Mayes for delivering this agreement to protect groundwater access and increase water security in Southern Arizona. This is the kind of collaboration we need to see more of—bringing together stakeholders to conserve water, protect rural communities, and support the long-term viability of Arizona agriculture,” said Arizona Senator Mark Kelly.

“Thanks to Attorney General Kris Mayes’ swift action after hearing community members’ concerns about the Douglas and Willcox groundwater basins, Arizona is taking an important step to conserve our state’s precious groundwater resources,” said Arizona Senator Ruben Gallego. “Arizona’s groundwater is not unlimited, and it can’t be treated like a blank check. When I was in the House, I raised serious concerns with Riverview about its water management practices and pushed the company to come to the table. This settlement sets an important precedent for Arizona: if you use our state’s water, you have a responsibility to protect it. Conserving our groundwater requires real accountability and collaboration with farmers, local communities like Willcox, and water experts. This outcome proves we can safeguard Arizona’s water future while continuing to support a strong economy.”

“The Riverview settlement is a significant achievement for residents and water users in the Willcox Groundwater Basin. Groundwater levels there have fallen precipitously since the 1950s, causing numerous wells to go dry and threatening the availability of water for current and future generations. Meaningful reductions in withdrawals are needed to slow this depletion of groundwater, and the fallowing of farmland by the largest water user in the Basin is a wise step forward,” said Kathy Ferris, a water leader in Arizona for more and 40 years and one of the architects of the 1980 Groundwater Management Act. “Add in the $11 million of funding that Riverview will be providing to the community for continued access to drinking water, and this settlement is a serious accomplishment.”

“Attorney General Mayes has achieved a significant protection for the residents of Sulphur Springs Valley. This remarkable agreement will assure their future access to water, the critical resource for every community,” said former Attorney General Terry Goddard, President of the Central Arizona Water Conservation District. “It is a creative approach and an example of how to protect other Arizona groundwater basins!”

“The Sulphur Springs Valley groundwater agreement settled by the Attorney General is a major step forward in addressing the overuse of groundwater. The agreement also represents a major milestone with the largest groundwater user in the valley, Riverview Dairy, acknowledging a responsibility to reduce groundwater use and to mitigate the impact of their use on residents of the region,” said Jim Holway, the founding director of the Babbitt Center for Land and Water Policy who recently retired after 40 years of working on water and land policy in Arizona and throughout the southwest. “Arizona critically needs new planning, regulatory and financial tools to prevent the loss of water supplies in rural areas and this requires legislative action to create effective, long term and cooperative region-wide solutions engaging all water users. However, since our legislative leaders continue to block needed actions, I commend the Attorney General for her proactive efforts advocating for Arizonans and hopefully laying the groundwork for sustainable rural water management.”

"We have been dealing with water shortages for some time. The negotiations between the people involved right now is a good one,” said retired Mayor of Willcox Mike Laws. “The figure that was thrown at me was $11 million to help people in the area dig new wells deeper than the ones they have. The math may not be exact but it’s about 25 to 30,000 I think to dig a new well. This money can be put to good use and could possibly help more than 300 families that have no water or is hauling water to live as normal as they can."

"Thanks to the Attorney General and the folks at Riverview for coming together to establish an opportunity that could last many generations. This offers some mechanisms for communities to come together to pool funds for water and the betterment of the whole group and the whole community,” said Ed Curry, fourth-generation Chile farmer in Pearce, Arizona and President of Curry Seed and Chile Company. “This kind of agreement can bring peace across all of rural Arizona, not just Willcox. This brings some good hope, not only for today, but for many generations to come, to help us keep rural Arizona sustainable."

“This gives me hope. The Attorney General actually listened to us two years ago at her town hall in Sunsites,” said Cheryl Knott, resident of Pearce who spearheaded the signature-gathering to secure the active management area ballot initiative for the Willcox and Douglas basins. “So many people stood at the microphone and told her about the terrible personal financial impact of having a well that's going dry. And the Attorney General actually followed up, so now people will get the help they need and the help they deserve when their wells go dry. “

“As a domestic well owner in this area who has seen our water level drop nearly 150 feet in the past 30 years I welcome and support this agreement between Riverview LLC and Arizona Attorney General Kris Mayes,” said Steve Kisiel, resident of Pearce and domestic well owner. “I see this agreement as an acknowledgment that in the arid Southwest groundwater is a vital public resource and that large scale pumping has significant negative impact on the general public.”

"I am amazed at this development! It is not something I ever thought would actually happen,” said Lisa Glenn, resident of Willcox for over 50 years. “We owe Attorney General Kris Mayes a huge ‘thank you’ and encourage her to now address the extraordinary amount of water that can be pumped from the Willcox and Douglas aquifers every year."

“Rural Arizonans have been losing their homes, farms, and businesses because of unregulated over pumping of groundwater, leaving many with dried out wells and costly bills to drill deeper or haul water,” said Kevin Moran, Associate Vice President, Regional Affairs, for Environmental Defense Fund. “This historic settlement, a first in the nation, finally acknowledges the harms being done to rural Arizona by exploitative and unsustainable water pumping. Arizona is fortunate to have Attorney General Kris Mayes defending rural communities and taking action since our state Legislature has repeatedly failed to provide even basic protections for rural Arizona.”

“This settlement is a good step in the right direction and sends a message to big pumpers that they cannot just come into communities and dry up wells without there being repercussions,” said Sandy Bahr, director of Sierra Club's Grand Canyon Chapter. “A lot more needs to be done in Willcox, including via the active management area, to reduce groundwater pumping and stabilize the aquifer to ensure a more sustainable future for these communities. Beyond Willcox, many of our rural areas need groundwater protections and to do that we need strong legislation, which is why the continued inaction or worse at the Arizona Legislature is so irresponsible.”

“Thank you Attorney General Kris Mayes, for taking decisive action to protect Arizona’s water future. This settlement represents a huge step forward in conserving our water supply and beginning to correct years of Republican neglect to protect rural communities. I’ll continue to work at the federal level to support these efforts,” said Arizona Representative Yassamin Ansari (AZ-03).

“Responsible groundwater management is a pillar of Arizona's success, and I applaud Attorney General Mayes for brokering a settlement to the benefit of business, residents, and all Arizonans,” Phoenix Mayor Kate Gallego said. "As our state faces uncertainty in the Colorado River basin, it is more important than ever that we get this right."

"I am deeply grateful for Attorney General Mayes' leadership to protect our rural groundwater and showcase the lasting benefits that public-private partnerships can bring to Arizona,” said Secretary of State Adrian Fontes. “For decades our state leadership has failed to meet the moment when it comes to water conservation efforts, rendering so many other investments into our state useless if generations to come cannot remain confident in Arizona's water future. This settlement should be celebrated by all who wish to call Arizona home for years to come."

“In Arizona, water is our most precious resource. For too long, rural communities in Cochise County and across our state have been harmed by large corporations over-pumping local groundwater supplies. I applaud Attorney General Mayes for taking decisive action to protect our communities and preserve Arizona’s water for future generations,” said Arizona Representative Adelita Grijalva (AZ-07). “Now, it's time for our Republican-controlled State Legislature to follow AG Mayes' lead and pass comprehensive groundwater management policies statewide.”

"Attorney General Kris Mayes and her team stepped up when rural Arizonans needed relief—not excuses. This settlement delivers long-overdue relief to families whose wells ran dry through no fault of their own,” said Arizona State Senator and ASU Global Futures Scientist Lauren Kuby. “While the Legislature has dragged its feet on groundwater reform, the Attorney General’s Office chose action, accountability, and science-based solutions.”