Arizona Resort and Distillery Pioneer Native Agave Farming

Small-scale agave farming is seeing a resurgence in Arizona as local growers and distillers look toward native species to create sustainable spirits and conserve water during ongoing drought conditions.

According to reports published April 6, 2026, a resort and a nano-distillery in the state are focusing on native agave species to tap into the growing market for agave-based spirits while reducing agricultural water consumption.

Sustainable Production in Bisbee

In the Mule Mountains south of Bisbee, Palmeri Distillery is implementing a high-desert approach to spirit production. The facility is situated at an elevation of one mile and operates as the smallest distillery in the United States, measuring 225 square feet.

The distillery manages 20 acres of land and utilizes local, drought-tolerant crops suited for the Arizona climate. Palmeri operates off-grid, employing rain catchment systems with the goal of becoming carbon positive. The company emphasizes the role of agave in capturing carbon as part of its environmental strategy.

Palmeri produces spirits on-site using small batches and whole ingredients, avoiding the use of additives, sugars, flavors, or bulk alcohol syrups. Its product lineup includes Palmeri Agave Spirit, Sonoran Wheat Vodka, Dry Desert Gin, and Sky Islands Rum.

Agricultural Integration and Culinary Use

Beyond distilling, other Arizona entities are integrating agave into larger agricultural and culinary programs. One local resort has established over eight acres of agave cultivation to support its culinary operations.

The focus on native species is intended to help Arizona growers weather drought conditions, as agave requires significantly less water than many traditional crops.

Historical Context of Arizona Agave

The relationship between Arizona residents and agave dates back thousands of years. Archeological evidence at the base of Tumamoc Hill in Tucson indicates that agave cultivation in the region began as early as 500 CE.

Further evidence shows that the Hohokam people utilized agave in agricultural fields during the classic period, which spanned from 1000 to 1360 CE.

The production of agave spirits was once common in southern Arizona, where distillates such as lechuguilla, bacanora, and palmilla—the term for sotol in Sonora—were frequently found in saloons. Historical records indicate that Arizona even produced the only tequila ever made outside of Mexico.

This industry faced a significant decline following a prohibition enacted in 1915 by the governor of Sonora, Plutarco Elías Calles. This prohibition on bacanora and other agave distillates remained in effect until 1992.

Current efforts in Arizona represent a return to these regional traditions, aligning historical cultivation practices with modern sustainability goals to meet the increasing consumer demand for regional agave spirits.