The company, Fondomonte Arizona, leased 3500 acres of land for $25 per acre. Under existing state law, the company was allowed to pump as much groundwater as it needed for no additional cost. According to state records, Fondomonte used 5.3 billion gallons of water last year.

"It's unacceptable that Fondomonte has continued to pump unchecked amounts of groundwater out of our state while in clear default on their lease. I'm proud my administration has taken swift action to hold defaulting high-volume water users accountable and bring an end to these leases. And moving forward, I will continue to do everything in my power to protect Arizona's water so we can continue to sustainably grow for generations to come," said Governor Katie Hobbs in a news release.