Consolidated Water Co. Ltd. (NASDAQ: CWCO) announced that its Cayman Islands subsidiary, Cayman Water Company Limited, has received a new 25-year exclusive license from the Utility Regulation and Competition Office of the Cayman Islands to provide potable water service on Grand Cayman.

The license, granted June 18, 2026, carries a commencement date of August 1, 2026, and runs through 2051. It gives Cayman Water the exclusive right to produce water from seawater, distribute, and sell potable water in Seven Mile Beach and West Bay, two of the three most populated areas of Grand Cayman. The license includes an annual water rate adjustment mechanism subject to regulatory approval each July 1.

Under the new rate structure, customers will see an approximately 6.5% reduction in the cost of water per gallon compared with the prior license, according to CEO Rick McTaggart. "Lower base water rates and energy cost recovery charges under this new license will provide an approximately 6.5% reduction in the cost of water per gallon to our customers," McTaggart said.

The company estimates that if the new rates had been applied to historical volumes, revenues would have been approximately $2.1 million lower in 2024, $1.9 million lower in 2025, and $0.6 million lower in the first quarter of 2026 compared with the prior rate structure. The company noted these figures are estimates based on historical data and are not necessarily indicative of future results.

Cayman Water has operated retail water service on Grand Cayman since 1973. A prior concession granted by the Cayman Islands government in February 2025 maintained the terms of the previous license while negotiations for the new license continued.

The company filed a Form 8-K with the U.S. Securities and Exchange Commission disclosing further details of the license.