A Maui County Council committee voted 7-1 on Tuesday to recommend spending $6 million to buy two privately owned water systems in West Maui, advancing Mayor Richard Bissen's push to shift the region's drinking water into public hands. The systems, run by Launiupoko Water Co. and Olowalu Water Co., serve customers throughout the Lahaina Water District — Launiupoko alone counts 402 active connections — and together the purchase would add roughly 480 potable and 72 non-potable connections to the county's water rolls. Council Member Alice Lee cast the lone no vote, while Shane Sinenci was absent and excused from the meeting.
The vote, reported by Maui Now, sends Resolution 26-116 to the full Maui County Council for consideration, a step required because county code mandates council authorization for any real property acquisition exceeding $250,000. Council Member Tamara Paltin supported the acquisitions, and Vice-Chair Keani Rawlins-Fernandez said the deal would put water control in the community's hands after years of advocacy by West Maui residents.
What the $6 Million Would Buy
Under the deal, Maui County would acquire wells, reservoirs, booster pumps, pipelines and easements from both utilities, along with roughly 16 miles of potable water mains and 3 miles of non-potable mains, according to the county Department of Water Supply. The Launiupoko system carries an appraised value of $8,056,000 but would be purchased for $3.5 million, while the smaller Olowalu system, appraised at $1,978,000, would go for $2.5 million — about $518,000 above its appraised value.
Department of Water Supply projections show Launiupoko generating roughly $2.56 million in annual revenue against about $880,000 in operating costs, and Olowalu bringing in about $734,000 against $672,000 in costs. Officials say both systems, which are regulated utilities, would operate in the black under county rates, meaning existing customers would not require a taxpayer subsidy. Department staff physically inspected both systems during due diligence, and Tom Cook told the committee the appraisal and engineering review had been thorough.
A Legacy of Private Control in West Maui
The Launiupoko and Olowalu utilities trace back to developer Peter Martin, co-founder of West Maui Land Co., who built the systems to supply groundwater and diverted stream water to master-planned agricultural subdivisions outside Lahaina, according to Honolulu Civil Beat. A 2023 investigation by that outlet found residential accounts served by Launiupoko Water Co. used an average of 5,750 gallons of water per home daily — nearly 20 times the national average — with state estimates showing more than 1.5 million gallons a day going toward cosmetic lawn landscaping across a few hundred luxury lots.
Where West Maui's Water Stands Today
Private companies currently control about 72 percent of West Maui's water infrastructure, with the county holding the remaining 28 percent. During Tuesday's discussion, Council Member Gabe Johnson said the acquisition would replace private profit motives with public service, while Council Member Nohelani Uʻu-Hodgins called it a historic opportunity, noting that a willing seller for water and infrastructure isn't always available.
One Dissenting Vote and Board Concerns
Council Chair Alice Lee said she wanted input from the county's Board of Water Supply before committing to the purchase, though she added she could still change her mind once the matter reaches the full council. Council Member Kauanoe Batangan supported the measure but said he might reconsider his position if the Board of Water Supply raises new concerns. A temporary investigative group within the board had already flagged concerns about surface and groundwater permits in the Lahaina Water District, which includes both systems.
Public testimony at a July 27 hearing on the resolution, held by the Water and Infrastructure Committee, favored the purchase. Unlike that hearing, no members of the public testified when the committee actually cast its vote on Tuesday.
State Regulators Still Have the Final Say
Even if the full council adopts Resolution 26-116, the sale cannot close without approval from the Hawaii Public Utilities Commission, which must sign off on any transfer of assets or surrender of a Certificate of Public Convenience and Necessity before a private water utility can be sold. That review could take several months, and county officials project the purchase would officially close by April 2027, according to a separate Maui Now report.
Hawaii regulators have signed off on similar deals before: they approved Hawaii Water Service's 2021 acquisition of Kapalua Water Co. assets from Maui Land & Pineapple Co., and its 2022 purchase of HOH Utilities on Kauai, according to California Water Service Group.
Maui County's purchase of the two systems does not itself require approval from the state Commission on Water Resource Management, though such approval would be needed if the county later seeks to expand water use beyond the systems' existing pumping permits. That distinction matters: in 2022, the commission designated the entire Lahaina Aquifer Sector — including Launiupoko and Olowalu — as a Surface Water and Groundwater Management Area, placing strict permit controls on all existing and expanded water use, according to the Hawaii Commission on Water Resource Management.
Wildfire Recovery Fuels the Urgency
The push for public water control gained urgency after the catastrophic August 2023 Lahaina wildfires and the drought years that followed, which exposed gaps in fire-suppression water delivery and prompted the county to pause new standard water connections on the public Lahaina system, prioritizing meters for temporary disaster-housing projects like Kilohana and Kalaʻiola, according to the Hawaii Department of Land and Natural Resources. The county has also budgeted for reservoir fencing, relining of a reservoir, SCADA system integration and expanded fire hydrant access after wildfire-related contamination problems surfaced in 2023.
County officials have tied the proposed acquisitions to future water capacity for affordable housing, agriculture, emergency preparedness and Native Hawaiian cultural practices. The Department of Water Supply says it is also evaluating potential connections between the Launiupoko, Olowalu and public systems to bolster reliability and meet broader community water needs.
Part of a Larger Buyback Plan
Tuesday's vote follows Phase 1 of the administration's broader water buyback strategy. On May 18, Maui County signed a non-binding memorandum of understanding with Maui Land & Pineapple Co. to acquire the company's Honokōhau Ditch System, seven aquifer wells and a long-term lease on the 8,661-acre Puʻu Kukui Watershed Preserve, according to Aloha State Daily. Combined with the Launiupoko and Olowalu purchase, the Bissen administration projects public ownership of West Maui's drinking water systems would climb from 45 percent to 93 percent. Mayor Bissen first floated the $6 million Launiupoko-Olowalu proposal on July 1.
Rising Water Costs Under Private Ownership
The push for public ownership comes amid rising costs for West Maui residents still served by private utilities. Hoodline reported in February that Hawaii Water Service had filed for a 59% rate hike in Kapalua to generate $2.22 million in annual revenue for infrastructure upgrades — a contrast county officials point to when arguing public ownership of Launiupoko and Olowalu can keep rates stable without new revenue increases.
