Maui Real Estate and Agriculture Face Development Delays and Cost Increases Due to New Water Use Calculations
Maui property owners, developers, investors, and agricultural producers must prepare for significant changes in water service request processing. Effective January 1, 2026, the County of Maui Department of Water Supply (DWS) will mandate a new method for calculating water usage, which is likely to introduce project delays and potentially increase overall development expenses.
The Change
Beginning January 1, 2026, the Maui DWS will shift to a new system for calculating the amount of water allocated for new service requests. This change aims to provide a more accurate, potentially more stringent, assessment of water needs for new developments and agricultural uses. The DWS has launched an informational webpage to detail this new methodology, signaling a proactive effort to inform the public, though the full implications for applicants are still being assessed.
Who's Affected
This policy change directly impacts several key sectors on Maui:
Real Estate Owners & Investors
Property owners, developers, and investors planning new construction or major renovations requiring new water service connections will face altered requirements. The new calculation method could result in reduced water allocations compared to previous standards, necessitating project redesigns or adjustments to scale. Furthermore, understanding and navigating the new calculation methodology may add 45 to 90 days to the initial stages of the permitting process, leading to construction delays and increased carrying costs. Investors should factor these potential delays and cost overruns into their risk assessments for Maui-based projects.
Entrepreneurs & Startups
Businesses, particularly those in manufacturing, hospitality, or any industry requiring significant water infrastructure for new facilities, will need to account for the new water use calculations. Delays in securing water service can push back operational start dates, impacting revenue projections and investor confidence. Startups reliant on timely facility development may find their expansion plans hindered.
Agriculture & Food Producers
For agricultural operations seeking new water hookups for irrigation, livestock, or processing facilities, the new DWS methodology will be critical. Depending on the revised calculations, existing water rights or the feasibility of new agricultural projects could be impacted. Producers may face the necessity of investing in advanced water conservation technologies or re-evaluating the scope of their operations to comply with potentially more restrictive water allocations. This could also affect the viability of new agricultural ventures on Maui.
Second-Order Effects
The implementation of a new, potentially more restrictive, water-use calculation method can trigger several ripple effects across Maui's economy. A prolonged permitting process for new developments due to water service, coupled with potential redesigns, could slow the overall pace of construction. This slowdown in development might lead to reduced demand for construction labor in the short to medium term. Concurrently, any agricultural projects constrained by water availability may lead to decreased local food production, potentially increasing reliance on imported goods and affecting food prices for consumers. Additionally, if new residential developments are delayed, it could exacerbate existing housing shortages, indirectly impacting the availability of labor for other sectors.
What to Do
Given the January 1, 2026, effective date, proactive steps are essential for all affected stakeholders.
Real Estate Owners & Investors
Action: Prioritize the review of all pending and future water service applications. Consult directly with the Maui DWS to understand the new calculation methodology and its specific impact on your planned projects. Engage with civil engineers and architects to assess potential design modifications and cost implications. Aim to submit complete applications well in advance of the January 1, 2026 deadline if possible.
Entrepreneurs & Startups
Action: If your business requires a new water connection, contact the Maui DWS immediately to obtain detailed information on the new calculation method. Incorporate potential delays into your project timelines and operational launch plans. Explore all available water conservation strategies and technologies that could optimize your water usage under the new framework.
Agriculture & Food Producers
Action: Schedule consultations with the Maui DWS to clarify how the new water use calculations will affect your specific agricultural needs, whether for irrigation, cultivation, or processing. Assess necessary adjustments to your farming or production plans and investigate investments in water-efficient technologies like drip irrigation or water recycling systems. For new ventures, this analysis is critical before committing significant capital.
Action Details: All affected parties should schedule an informational meeting with the Maui Department of Water Supply's Water Resources Division before November 30, 2025, to confirm their project's water needs align with the forthcoming calculation method and to identify any potential roadblocks. Failure to do so could result in significant project delays and unexpected cost increases post-January 1, 2026.
