The basic pitch of the Cadiz water project is that it will store surplus water in an aquifer underlying its 33,000-acre desert property 200 miles east of Los Angeles for use in dry periods. Cadiz also would draw groundwater from the aquifer. For the MWD, which was expected to transport the water in its aqueduct, the project didn't pencil out. In part, this was because Cadiz Inc. didn't appear to have the money to finance its end of what was then an estimated construction budget of $150 million. The company was loaded with debt and had never turned an annual profit.

Source: Los Angeles Times March 07, 2018 17:54 UTC