The auction deal structure was based on a 25% down payment. The town offered leverage and will be paid $6,162.50 per acre-foot upon the completion of the CAWS process and a final payment of $12,325 per acre-foot upon application for a building permit. These future payments due to the town are referred to as the “Town’s Leverage.”

WAM offers the following structures to purchase water for use for development in the Town of Prescott Valley. These amounts are in addition to the amounts owed to the town*:

  • Cash to Town’s Leverage – For a cash payment of $12,000 per acre-foot, the buyer can purchase WAM’s position to the town’s leverage. This allows the buyer to fix the cost of water and warehouse water for future development without further payment obligations until the CAWS process is completed.
  • Terms to Town’s Leverage – For three annual payments of $6,000 per acre-foot the buyer can purchase WAM’s position to the town’s leverage. This allows the buyer to fix the cost of water with terms.
  • Option to Purchase – This structure is for parties that are ready to initiate the entitlement and CAWS process. The buyer pays a non-refundable payment of $200 per acre-foot for a one-year option to purchase water. This initial term may be extended for one year with the payment of $800 per acre foot. Upon obtaining CAWS approval, the buyer will pay WAM an initial payment of $9,000 per acre-foot. A final payment is due upon applying for a building permit; however, all payments are due within five years of execution of a Option to Purchase Agreement.The final payment is currently $12,500 per acre-foot, but will be increased annually.
*WAM will review the pricing structure annually with the intended goal of publishing our new pricing by September 1st of each year.


WAM’s lawyers have developed standard contracts to implement the four transaction approaches. You may view a sample of each contract here for more detailed information. These contracts reflect the commitments that WAM made to the town in the closing of the auction sale.

© 2008 Water Asset Management, LLC. All Rights Reserved. The contents presented herein are provided for information purposes only. No offering of interests in any of The Reservoir Funds formed or to be formed is made or implied as a result of the information herein. An offering for interests in Water Asset Management, LLC is made only pursuant to a Confidential Private Placement Memorandum.