Prescott Valley Wastewater Auction
Water Deal of the Year
What is it?
Prescott Valley upgraded its wastewater treatment plant to reuse quality, then returned the treated effluent to the aquifer via a dry river bed. By augmenting the groundwater, this created a new water right to draw 2,724 acre-feet per year (3.36 million m3/yr) from the aquifer. This was auctioned to Water Property Investors LLC for $24,650 per acre-foot (or $20 per m3), potentially netting the town $67 million.
Who is responsible?
The auction was arranged by WestWater Research on behalf of Prescott Valley. Water Asset Management was the buyer, through its subsidiary Water Property Investors. Nebraska-based Aqua Capital Management guaranteed the floor for the auction at $53 million.
Why is it shortlisted?
- This truly stunning deal shouts at 67 million decibels that there is value in wastewater reuse. The world has to listen.
- The deal was not easy to structure, not least because of the need to share the risks in difficult real estate market conditions, but all parties persevered and a positive outcome was achieved for all.
- Prescott Valley in Arizona has been one of the fastest growing towns in the West, but its future has been overshadowed by a lack of water. Innovations such as this show that growth and the environment can advance hand in hand.