- The agreement reduces groundwater use in the Sulphur Springs Valley.
- Riverview will fallow or transition 2,000 acres of irrigated farmland.
- Two funds totaling $11 million will support drinking water access.
- The settlement applies for 20 years and includes reporting oversight.
Friday, January 9, 2026 — Arizona Attorney General Kris Mayes announced
yesterday a settlement agreement between the State of Arizona and Riverview, LLP, a Minnesota-based dairy operator with agricultural operations in Cochise County. The agreement addresses concerns about declining groundwater levels in the Sulphur Springs Valley, which includes the Willcox and Douglas groundwater basins.
The settlement follows an investigation by the Attorney General’s Office into whether large-scale groundwater pumping in the region constituted a public nuisance under Arizona law. While Riverview denies any wrongdoing or violation of law, both parties agreed to a comprehensive resolution focused on groundwater conservation and maintaining access to potable water for affected residents.
The settlement and release agreement was executed on December 31, 2025, and will remain in effect for 20 years.
Groundwater Declines and Community Impacts.
Groundwater levels in the Sulphur Springs Valley have been declining for decades. Many rural residents rely on domestic wells, and some wells have failed or are projected to fail as water levels drop. These impacts have been especially challenging in unregulated groundwater basins where pumping limits historically did not apply.
Agriculture remains a central part of the valley’s economy and identity, and the agreement acknowledges that role while also recognizing the need to reduce withdrawals and address the effects of groundwater depletion on households, schools, and community water systems.
Land Fallowing and Water Conservation Commitments.
Under the settlement, Riverview committed to removing 2,000 acres of irrigated farmland from row-crop production over a phased period. The acreage will be fallowed or transitioned to non-row-crop uses such as grazing, habitat, or similar land uses.
The reduction will occur in three phases:
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At least 650 acres by the fourth anniversary of the agreement.
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An additional 650 acres by the eighth anniversary.
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A final 700 acres by the twelfth anniversary.
The fallowed acreage must remain out of row-crop production for 15 years from the applicable phase date. If Riverview transfers ownership of this land, equivalent acreage must be fallowed as a substitute. The company must also submit regular reports verifying compliance.
In addition, Riverview agreed to continue advanced irrigation and water-efficiency practices across its remaining irrigated operations. These include low-energy precision application systems, center-pivot irrigation with drop hoses, variable-frequency drives on pumps, and automated irrigation controls designed to reduce water use.
Two Funds to Support Drinking Water Access.
A central feature of the settlement is the creation of two funds totaling $11 million to help residents maintain access to potable water.
Sulphur Springs Water Fund: $5.5 Million.
The Sulphur Springs Water Fund will assist residents and schools primarily located outside a 1.6-mile radius of any Riverview irrigation well. This fund will be administered by an independent Arizona nonprofit organization, with oversight from a five-member review panel representing water and land policy institutions.
Eligible uses include:
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Replacement or re-drilling of failed or failing wells.
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Installation of water storage tank systems.
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Access to water fill stations and water-hauling services.
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Support for school water infrastructure.
Riverview will contribute $3.5 million by December 31, 2025, and $2 million by December 31, 2026. The company will have no approval or veto authority over how the fund is used. Applications for this fund are expected to open on April 8, 2026.
Riverview Funding Commitment: $5.5 Million.
The Riverview Funding Commitment applies to residents, schools, and water providers located within a 1.6-mile radius of Riverview irrigation wells. This fund will be administered directly by Riverview under detailed terms set out in the agreement.
Funding will be made available over up to 20 years, beginning with an initial contribution within 30 days of the agreement’s effective date, followed by annual contributions. The agreement includes provisions to accelerate funding if demand exceeds available funds.
Priority uses include:
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Construction of replacement groundwater wells.
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Installation of tank systems and water-hauling infrastructure.
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Expansion or improvement of existing community water systems.
Payments are made directly to qualified vendors rather than to individual applicants.
Oversight, Reporting, and Legal Terms.
Both funds require periodic reporting to the Arizona Attorney General’s Office. The agreement also establishes clear eligibility rules for applicants and limits funded water use to domestic and school purposes.
In exchange for these commitments, the State of Arizona released Riverview from past claims related to alleged groundwater nuisance activities occurring before the agreement’s effective date, provided Riverview complies with the agreement and continues ordinary farming practices. The agreement expressly states that Riverview does not admit liability or wrongdoing.
The Attorney General also agreed to suspend further investigative activities related to public nuisance claims against Riverview’s agricultural operations during the term of the agreement, while retaining authority to enforce compliance.
Implications for the Future.
The settlement is among the first in Arizona to directly link groundwater pumping reductions with financial support for affected residents outside of traditional regulatory programs. It arrives as the Arizona Department of Water Resources establishes new Active Management Areas in parts of Cochise County, placing additional oversight on groundwater use.
While the agreement does not create new statewide groundwater regulations, it may influence how future disputes in rural basins are addressed, particularly where domestic wells and large-scale agricultural pumping intersect.
Image: Willcox, Arizona
. Ken Lund, April 2009. Licensed under the Creative Commons Attribution-Share Alike 2.0 Generic license.
Frequently Asked Questions
What area does the settlement cover?
The agreement applies to the Sulphur Springs Valley in Cochise County, including the Willcox and Douglas groundwater basins.
Does the settlement limit all Riverview groundwater pumping?
The settlement requires Riverview to reduce pumping by fallowing or transitioning 2,000 acres and to continue water-efficient irrigation practices. It does not impose a numeric pumping cap.
Who can apply for assistance from the funds?
Eligible applicants include residential well owners, certain schools, community water systems, and water providers that meet the location and eligibility criteria described in the agreement.
When will residents be able to apply for funding?
Applications for the Sulphur Springs Water Fund are expected to open in April 2026. Applications for the Riverview-administered fund will follow the schedule outlined in the agreement.
Does Riverview admit it caused wells to fail?
No. The agreement explicitly states that Riverview denies liability and that the settlement is a voluntary resolution without an admission of wrongdoing.
How long does the settlement last?
The agreement remains in effect for 20 years from its effective date, with certain funding obligations continuing until all committed funds are expended.
