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NewsVoice of San DiegoAugust 21, 2026San Diego

Desalination companies propose water-swap projects to increase Arizona's Colorado River access

Private companies are pitching desalination plants in Mexico that would provide fresh water to Mexican cities in exchange for Arizona gaining the right to draw more water from the Colorado River. The proposal, currently under review by Arizona's Water Infrastructure Finance Authority, aims to mitigate Arizona's mandatory water cuts by utilizing a 'paper water' exchange model.

water-policydesalinationcolorado-riverinternational-relationsinfrastructureenvironment
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Why It Matters

Arizona faces significant mandatory cuts to its Colorado River water supply, and these proposals represent a potential, though conceptual, strategy to secure additional water rights through international infrastructure investment.

Key Facts

  • Arizona is facing mandatory cuts to its Colorado River water supply due to extreme drought.
  • The Arizona legislature allocated $1 billion in 2022 to the Water Infrastructure Finance Authority (WIFA) to fund new water projects.
  • EPCOR proposes a plant capable of drawing 1.2 billion gallons of seawater daily to produce 446 million gallons of fresh water.
  • Acciona proposes a plant producing up to 312 million gallons of fresh water per day.
  • The proposed 'paper water' exchange would allow Arizona to take more Colorado River water by replacing a portion of Mexico's share with desalinated water.
  • The federal government requires Colorado River basin states to reduce water use by 3 million acre-feet annually by 2036.
  • Previous proposals for desalination plants in Mexico have faced opposition due to concerns over water exportation and environmental impacts on the Sea of Cortez.
  • The Sea of Cortez is a protected area home to over 890 fish species and 695 plant species.
  • Any international water trade would require a new agreement (a 'Minute') between the U.S. and Mexico, negotiated by the IBWC.
  • Minute 323, signed in 2017, currently governs some aspects of U.S.-Mexico water storage.

Who's Mentioned

personClaudia Sheinbaum“President of Mexico.”personBen Alteneder“Assistant director for external affairs at WIFA.”organizationInternational Boundary and Water Commission“Agency responsible for negotiating international water agreements.”personAlfonso Durazo“Governor of Sonora, Mexico.”organizationEPCOR Water Innovation Partners“Canadian company proposing a large-scale desalination plant in Mexico.”organizationAcciona“Spanish company proposing a desalination plant and water recycling projects.”organizationWater Infrastructure Finance Authority of Arizona“Arizona state agency evaluating water infrastructure projects.”