Arizona Approved Desalination Project Appraisal
The Water Infrastructure Finance Authority authorized an appraisal scope for a new plant in Baja California.
Updated on Oct. 5, 2026 in Utilities
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The Water Infrastructure Finance Authority of Arizona approved an appraisal scope on September 16, 2026, for a proposed desalination plant in Baja California, Mexico. The facility aims to integrate desalinated water into the Colorado River system to address prolonged drought conditions in Arizona.
Why it matters
The initiative seeks to bypass rigid delivery constraints under the 1944 Water Treaty, which has been challenged by prolonged drought conditions impacting Arizona. By exchanging desalinated water for a portion of Mexico's Colorado River allocation, the project could alleviate supply shortages.
The project targets a supply capacity of 1.7 million cubic meters of water per day, compared to Mexico's annual treaty obligation of 431.7 million cubic meters. Mexico fulfilled only 29.2 percent of its required delivery volume during the 2020-2025 cycle.
The players
Water Infrastructure Finance Authority of Arizona
This is the state agency responsible for overseeing and financing water and wastewater infrastructure projects in Arizona.
Sacyr
This is a Spanish multinational company specializing in civil engineering, construction, and infrastructure concessions.
Arcadis
This is a Dutch design, engineering, and management consulting firm focused on built and natural assets.
Plenary Americas US Holdings
This is an infrastructure project developer that manages and finances public-private partnerships across North America.
The details
Led by a consortium featuring Sacyr, Arcadis, and Plenary Americas US Holdings, the plan involves constructing a plant that connects via pipeline to the Morelos Dam. This infrastructure would allow for the integration of desalinated water into the Colorado River, potentially providing water to Arizona between 2034 and 2039.
Timeline
September 16, 2026: WIFA board approved the desalination plant appraisal scope.
August 19, 2026: WIFA approved South Bay and groundwater projects.
February 2026: Mexico made a commitment to supply annual water.
2020-2025: Period of the previous water delivery cycle.
2034-2039: Potential timeframe for water supply to Arizona.
Market Landscape
This project attempts to evolve the rigid framework of the 1944 Water Treaty by introducing market-based water exchanges between nations. It follows a pattern set by regional efforts to supplement existing water allocations through infrastructure investment.
The potential integration of desalinated water aims to bolster the state's long-term water supply and mitigate the impacts of ongoing drought conditions. Residents and businesses may see reduced uncertainty regarding long-term water availability once the system reaches operational status.
The takeaway
The project highlights a transition toward utilizing cross-border technological solutions to address chronic water shortages in the desert Southwest. Securing reliable water sources remains a critical priority for state infrastructure planning as regional drought conditions persist.
Further reading
Learn more about local water management and infrastructure initiatives on the Arizona Utilities section page.
Source note: This article includes information reported by Mexico Business.
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