West Maui's long-running water dispute took a new turn this week. TY Management, the company that owns the Kapalua golf courses, filed a federal lawsuit against Maui Land & Pineapple Company (MLP) and its executives. TY Management is tied to Tadashi Yanai, the founder of Uniqlo.
If you own property in Kapalua or are thinking about buying there, here is a plain-language look at what is going on.
What the lawsuit claims
The new suit alleges fraud and racketeering. TY Management claims MLP raised irrigation water rates for the golf courses through improper billing, and that other Kapalua water users may have been affected too. The suit says MLP billed customers for repairs to its ditch system that were MLP's own responsibility.
These are allegations, and no court has ruled on them. MLP has called the claims meritless, says it will defend itself, and describes the suit as an attempt to pressure the company into handing over its water system.
How we got here
The Kapalua Plantation and Kapalua Bay courses get irrigation water from the Honokohau Ditch System, a plantation-era system more than 100 years old that MLP owns and operates. TY Management bought the courses from MLP in 2009 and 2010, and the purchase agreements included terms for water delivery.
The dispute first went to court in August 2025. TY Management sued, claiming MLP had not maintained the ditch system and had broken its water delivery promises. MLP filed a counterclaim. It said the courses kept using water during drought restrictions, and that a historic drought, not the condition of the ditch system, caused the shortage.
The dispute has been visible to everyone. In September 2025, the PGA Tour canceled its January 2026 tournament at the Plantation Course, citing water shortages.
The state's water priorities
West Maui is a designated Water Management Area under the state Commission on Water Resource Management. When water is short, state rules put stream flows, cultural uses and drinking water ahead of irrigation for golf courses and landscaping. That is why golf course irrigation can be cut sharply in a dry year while household water service continues.
A possible change in ownership
In May 2026, Maui County and MLP signed a non-binding agreement for the county to buy the Honokohau Ditch System and other West Maui water sources, wells and reservoirs. County officials say the deal would raise public control of West Maui drinking water from about 45% to 93%.
The price has not been set. It will come from an appraisal, and the Maui County Council still has to approve the final terms. The county expects to make an offer to MLP this winter.
For Kapalua homeowners, it helps to know who does what. Hawaii Water Service operates the water distribution system that serves about 1,000 Kapalua connections, and it is expected to keep serving those customers if the county acquires the water sources.
What it means for Kapalua real estate
Kapalua remains one of Maui's most desirable resort communities, and the questions here are about irrigation and long-term water management, not whether homes have water. Still, buyers should do their homework:
- Ask about water and irrigation costs. Find out whether the association or landscape budget has changed with water rates, and whether any increases are expected.
- Read the association documents. Look for any mention of water disputes, assessments or rate changes.
- Check the condition of landscaping and amenities. Golf frontage and resort amenities are part of what buyers pay for in Kapalua.
- Follow the county purchase. Public ownership of the water sources could bring more stability over time, but the deal is not final.
We will keep watching both the lawsuit and the county's purchase talks. If you own in Kapalua or are considering a purchase there, we are happy to talk through what this could mean for you.
Call The Maui Property Team at Compass at (808) 217-8832 or email joe@mauiproperty.com.