WAIALUA, Hawaii — Gov. Josh Green, M.D., the Hawaii Department of Transportation and the U.S. Army Garrison Hawaii signed a 50-year lease for Kawaihapai Airfield (formerly known as Dillingham Airfield) on Friday.

What You Need To Know

  • The new lease took effect on Saturday

  • Operations at the airfield were uninterrupted, including uninterrupted water service to tenants, which had been a point of concern before the lease was signed

  • HDOT, the Army Garrison Hawaii and the Army Corps of Engineers Honolulu District worked together to reach agreements on three key conditions

  • With this new lease, the Army has a five-year license with community-based Aqua Engineers to operate the Dillingham PWS

The new lease took effect on Saturday, July 6. Operations at the airfield were uninterrupted, including uninterrupted water service to tenants, which had been a point of concern before the lease was signed.

“Kawaihapai Airfield plays a significant role in aircraft training for civilians and the military and a significant role in a healthy, diversified economy,” said Governor Green. “I’m proud that as a state we are able to come together with the varied stakeholders at Dillingham to continue to operate as a civil aviation resource and reach a mutual solution for water delivery.”

In July 2023, the state informed the Army that it would not continue the lease without a 50-year lease agreement that allowed the state rights and powers to operate the airfield and manage the water system.

At the time, the state said that issues surrounding the lease prevented the state from receiving federal funds for the airfield.

In December 2023, the Department of the Army Headquarters granted local Army leadership’s request approval to negotiate the 50-year lease.

HDOT, the Army Garrison Hawaii and the Army Corps of Engineers Honolulu District worked together to reach agreements on three key conditions.

The first condition was a long-term lease and Joint Use Agreement so that HDOT would remain eligible for federal grants that could be used for infrastructure improvements and deferred maintenance work.

The second condition was that HDOT needed a new lease that included sufficient rights and powers to satisfy the department’s obligations under federal law for those federal grants.

The third condition was that HDOT would continue to have access to necessary water to operate and maintain the airfield, but would no longer be responsible for the operation and maintenance of the Dillingham PWS. That water system serves HDH tenants and about 30 water uses, including select residents and Camp Erdman. HDOT was overseeing the Dillingham PWS, however continuing to do so would not comply with federal funding requirements.

With this new lease, the Army has a five-year license with community-based Aqua Engineers to operate the Dillingham PWS. The license took effect on July 6, 2024.

This new license ensures that all water uses, both at the airfield and surrounding community, will continue to have water service. The Army and Aqua Engineers will work within the five-year term to secure a long-term agreement for the operation of the Dillingham PWS.

“This new 50-year lease will ensure Kawaihapai Airfield remains open for commercial activities and will continue to serve as a critical economic resource for Oahu’s North Shore community,” said Hawaii Department of Transportation Director Ed Sniffen. “This was a collaborative effort that brought together the state, the Army Garrison Hawaii, Army Corps of Engineers Honolulu District, local businesses, elected officials and community members, all focused on a common goal of ensuring the continued operation of Kawaihapai Airfield. We appreciate the tremendous efforts of the Army Garrison and Corps of Engineers in working with us and our community stakeholders to reach this important milestone.”

“This joint effort between the Army Garrison Hawai‘i, Corps of Engineers Honolulu District and the state of Hawai‘i Department of Transportation represents the commitment we all have to the local community, local vendors and the diverse set of users of Kawaihapai Airfield,” said Col. Steve McGunegle, commander U.S. Army Garrison Hawai‘i. “We want to also highlight that Aqua Engineers has come on board to run the Dillingham Public Water System as a third party and this is critical for the airfield and local community.”

Kawaihapai Airfield is utilized by the Army, where it conducts exercises and training; as well civilian owned-and-operated businesses that cater to visitors and residents, such as glider flying free-fall parachuting and sightseeing.