The San Carlos Apache Tribe has reached a preliminary agreement to secure a water source for the Rio Verde Foothills near Scottsdale.
The one-year agreement will allow the tribe to lease up to 200-acre-feet, or about 65-million gallons, of its Central Arizona Project water allocation to Dynamite Water Company.
The company will provide water to the Foothills Community which faces a January first deadline to secure a new water source.
A final deal will require approvals from the U.S. Bureau of Reclamation, U.S. Bureau of Indian Affairs and the San Carlos Apache Tribe Council.
The city of Scottsdale announced it was going to stop providing water to commercial companies hauling water the Rio Verde Foothills by the end of this year.
The community consists of about 740 homes, which requires outside companies to haul water to them.