Maui County reaches water deal with Maui Land & Pineapple

HONOLULU (HawaiiNewsNow) – Maui County has reached a deal with Maui Land & Pineapple to take control of most of the water system serving West Maui.

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Mayor Richard Bissen said the agreement will help manage drought, promote housing and reduce cultural disputes over streams.

Most of the conflicts over water on Maui have been the result of privately owned stream diversion systems relied on by users ranging from high-end resorts to traditional taro farmers.

The deal between the county and Maui Land & Pineapple is a first step toward a unified public system.

“The goal of this is to not be obviously arguing or fighting over water when it comes to priorities and projects,” Bissen said. “We do want this water again for perpetual use for our residents.”

Maui Land & Pineapple’s Honokōhau water system of dams, ditches and tunnels has been the subject of recent conflicts, including concerns about water for the Kāʻanapali golf courses, frequent water conservation orders, proposed residential rate increases, and both flooding and water shortages affecting traditional farmers.

Under a memorandum of understanding, Maui County will become owner of the ditch system, will lease the Puʻu Kukui watershed forest, and acquire seven wells, reservoir sites and pump stations.

“It’s our honor to collaborate with the County on this historic milestone – strengthening water and housing security for current and future generations,” MLP CEO Race Randle said.

The acquisition cost was not immediately clear. Bissen said the county is still negotiating and working on details.

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Randle described the transaction as more like a trade – the county will provide fair market value for the assets it acquires from MLP, but the compensation will be in the form of savings to the company from the state taking on costly upkeep and potential new development opportunities as the county increases the water supply.

“The county’s also offering to assist us with enabling land use approvals on land, which will enable us to create more homes and jobs in the communities that are in desperate need for housing,” Randle said.

He also said a county lease on the 8,600-acre Puu Kukui watershed will relieve MLP of high costs to protect the precious source of the water.

“To maintain fencing of almost 9,000 acres, to make sure the native species of trees are protected, keep rapid ohia death out of the forest,” Randall said.

The system’s thousands of residential, commercial and agricultural customers would have water rates set to cover the cost as well as improvements to bring together other neighboring systems and increase storage and transport capacity to bring water where the county sees the need.

“I think having the watershed and having the different wells available to us just expands our ability to provide water to avoid drought or try to prevent having to declare droughts,” Bissen said.

The deal marks the critical first phase of a broader effort that would also secure additional private water systems in Olowalu and Launiupoko.

The mayor said the county’s goal is to acquire all the old plantation water systems in the county, but that may not be easy. Some landowners, such as Mahi Pono, are already resisting county control.

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