Author Archives: David McCarville

The existing process to buy, sell or lease water rights is characterized by high transaction costs (legal fees), limited price discovery, information asymmetry and paper driven processes. These characteristics have created a marketplace that is highly inefficient. Water rights holders below a certain quantity are essentially barred from participating in the market due to theContinue reading “The Problem We Are Solving”

• Secure, encrypted data to provide detailed market information to participants • Efficiency in transferring data and value through tokenization of water rights • Database synchronized with Arizona Department of Water Resources public databases • Standard Sale & Lease Agreements that are mirrored in computer code enabling the use of Smart Contracts to execute salesContinue reading “Why Blockchain / Distributed Ledger Technology?”

We will create a digital marketplace that has these elements: •Identifies all market participants •Owners of Type 2 Rights •Owners of Long-Term Storage Credits •Potential Lessees and Buyers •Data available with improved User Interface (desktop and mobile) •Decreased Information and Transaction Costs •Increased trading volume •Optimize price discovery and utilization of a scarce resource

•Unique in that they can be used anywhere within an Active Management Area (“AMA”) •There are 5 AMA’s in Arizona: Prescott, Phoenix,  Pinal, Tucson and Santa Cruz •Type 2 owners possess a number of acre feet that can be leased or sold annually for non-irrigation water uses such as mining, industrial, etc. •Demand and pricing varies among AMA’s butContinue reading “Arizona Type 2 Water Rights”

•Earned when water is stored or “banked” underground for more than a year •LTSC’s can only be recovered within the AMA where they were stored •Can be bought and sold to support new municipal and industrial development •Most  holders of significant LTSC’s have earned for their own future use

•Identified areas with heavily mined groundwater and designated them as Active Management Areas (“AMA’s”) •AMA’s are subject to regulation under the Groundwater Code •Primary goal of the Phoenix, Prescott and Tucson AMA’s is safe yield by 2025: No more groundwater withdrawn than is being replaced •Pinal AMA (primarily agricultural) goal is to preserve the economyContinue reading “1980 Arizona Groundwater Code”