Arizona officials have reached an $11 million settlement with Riverview LLP, a Minnesota-based dairy operator, over its extensive use of groundwater in the Sulphur Springs Valley — a region long plagued by concerns of overpumping and declining wells.
Attorney General Kris Mayes announced the deal Thursday, describing it as a “significant victory for water security” in rural Arizona. Under the agreement, Riverview will be required to reduce its groundwater withdrawals faster than what current state rules mandate under the Active Management Area system.
“This company is agreeing to use less water, and to do it more quickly,” Mayes said during a press briefing. She emphasized that the deal represents a proactive effort to protect residents and farmers in Cochise County, where groundwater supplies have been dropping for years.
As part of the settlement, Riverview will contribute $11 million to two separate funds — each totaling roughly $5.5 million — to support projects such as drilling new wells, hauling potable water, and installing storage tanks for residents whose access to clean water has been affected. The funds will also assist schools, utilities, and municipalities across the region.
In addition to financial commitments, the dairy will take conservation steps that include fallowing or converting 2,000 acres of irrigated farmland to less water-intensive use.
Mayes called the agreement “the first of its kind” in Arizona and possibly the United States, setting a precedent for holding large agricultural water users accountable for groundwater depletion.
More details about the settlement and its implementation are available through the Arizona Attorney General’s Office.
