The Problem We Are Solving

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 the…

Why Blockchain / Distributed Ledger Technology?

• 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 sales…

Our Solution

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

Arizona Type 2 Water Rights

•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 but…

Arizona Long Term Storage Credits

•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

1980 Arizona Groundwater Code

•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the Groundwater Code •Primary goal of the Phoenix, Prescott and Tucson AMA’s is safe yield by 2025: No more groundwater withdrawn than is being replaced •Pinal AMA (primarily agricultural) goal is to preserve the economy…

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