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County announces agreement with Maui Land & Pineapple to acquire West Maui water system, other assets

Maui County Mayor Richard Bissen (left) and Maui Land & Pineapple Co. CEO Race Randle sign a memorandum of understanding outlining the county’s proposed acquisition of Maui Land & Pineapple’s West Maui water infrastructure and other assets. The agreement is part of a broader effort to expand public stewardship of West Maui water systems. Photo courtesy Maui County

Maui County has reached a memorandum of understanding with Maui Land & Pineapple Co. to acquire the company’s West Maui water infrastructure, a move officials say would significantly expand public stewardship of drinking water systems.

In a Monday announcement, Maui County Mayor Richard Bissen called the agreement a “monumental move” to secure water resources for the future.

According to the mayor’s office, the agreement is the first phase of a broader effort to acquire additional private water systems in Olowalu and Launiupoko and increase public stewardship of West Maui drinking water systems from 45% to 93%, while supporting housing development for residents.

“Transitioning Maui Nui water resources to the public trust strengthens the county’s ability to improve water resiliency and support critical affordable housing projects, traditional and cultural practices, emergency response, agriculture needs and environmental protection,” Bissen said in a news release. “This MOU caps a year of negotiations with MLP, and we appreciate their willingness to engage and work collaboratively toward solutions that provide long-term public benefit.”

The MOU is a formal declaration of intent establishing a framework for the county to acquire MLP’s West Maui water system, along with select Upcountry water infrastructure and other MLP assets.

Beyond shifting ownership from private to public control, the MOU also creates opportunities to expand workforce and affordable housing for local families.

“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 in the release. “Maui County continues to demonstrate a holistic understanding of all elements of a water system — from critical watersheds to our streams, aquifers and wells.”

The MOU provides the framework for the transfer of MLP’s West Maui water assets including the Honokohau Ditch System and its associated tunnels, siphons, pipelines and key reservoirs.

The county would also acquire the Puʻu Kukui Watershed through a long-term ground lease for the 8,661-acre watershed preserve to maximize rainfall capture and retention for surface water and groundwater systems in West Maui.

The MOU also includes four Honokowai aquifer wells in the Kahana ahupuaʻa and three Honolua aquifer wells in the Honokahua ahupuaʻa, as well as two proposed and new Honolua aquifer well sites in the Mailepai ahupuaʻa.

Other parts of the MOU would transfer a proposed 50-acre, approximately 120-million-gallon reservoir site to support the county’s Mahinahina water treatment facility and Kahana Pump Station.

As part of the agreement, an existing Upcountry well in Piʻiholo would also be acquired, along with land for additional well sites and water storage, as well as non-water infrastructure assets. The non-water assets include a Mokuʻula land parcel, Kahana roadway and land in Hāliʻimaile for a Police substation and a Fire station.

The county said the purchase price for MLP assets will be established through formal county appraisals and system assessments, and estimates are not yet available.

Conditions of the final sale are still being negotiated, and the acquisition must be approved by the Maui County Council.

Bissen announced earlier this year that the county is in negotiations with MLP, Kamehameha Schools and West Maui Land to acquire key water system assets, including the Olowalu and Launiupoko irrigation and water companies.

If successful, West Maui water systems, including drinking and irrigation systems, would increase from 25% to 65% publicly owned. Public stewardship of drinking water systems would rise from 45% to 93%, according to the county.

“My administration is committed to long-term stewardship, responsible planning and protecting Maui County’s future,” Bissen said. “Water security and resiliency are foundational to a strong and sustainable community. This monumental step with MLP demonstrates what can happen when organizations come together around shared community priorities.”

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