Peter Martin spent decades guzzling water around Lahaina. Then came the fire.

Editor鈥檚 note: This story by senior staff writer  and staff writer is reprinted with . You can subscribe to its .

Just weeks after the deadliest wildfire in modern U.S. history ripped through the coastal town of Lahaina, Native Hawaiian taro farmers, environmentalists, and other residents of West Maui crowded into a narrow conference room in Honolulu for a state water commission hearing. 

The chorus of criticism was emotional and persistent. For nearly 12 hours, to reinstate an official who had been key to strengthening water regulations and to resist corporate pressure to weaken those regulations. One after another, they calmly and deliberately delivered scathing criticism of a developer named Peter Martin, calling him 鈥渢he face of evil in Lahaina鈥 and 鈥減ublic enemy No. 1.鈥

One person summed up the mood of the room when he said, 鈥淔鈥 Peter Martin.鈥

More than 100 miles away on Maui, Martin followed parts of the hearing through a livestream on YouTube. Despite the deluge of criticism, he wasn鈥檛 upset. He wasn鈥檛 even surprised. After nearly 50 years as a developer on Maui, he鈥檚 used to public criticism.

鈥淲hen you鈥檙e around a gang of people, a mob, the commissioners just listen to the mob, they don鈥檛 listen to reasoned voices,鈥 Martin told Grist. 鈥淚鈥檓 not comparing these people to Hitler; I鈥檓 just saying Hitler got people involved by hating, hating the Jews.鈥 

Martin, who is 76, has long been controversial. He moved to Maui from California in 1971 and got his start picking pineapples, teaching high school math, and waiting tables. Before long, he began investing in real estate. His timing was perfect: Hawaii had become a state just 12 years earlier, and Maui鈥檚 housing market was booming as Americans from the mainland flocked there. By 1978, local headlines were bemoaning , and prices only went up from there.

Developer Peter Martin told the New Yorker that protecting water for Native Hawaiian cultural practices was 鈥渁 crock of shit,鈥 and that invasive grasses and 鈥渢his stupid climate change thing鈥 had 鈥渘othing to do with the fire.鈥 (Cory Lum/Grist/2023)
Developer Peter Martin told the New Yorker that protecting water for Native Hawaiian cultural practices was 鈥渁 crock of shit,鈥 and that invasive grasses and 鈥渢his stupid climate change thing鈥 had 鈥渘othing to do with the fire.鈥 (Cory Lum/Grist/2023)

Over the last five decades, Martin has made millions of dollars off this real estate boom, building on West Maui and turning hundreds of acres of plantation land into a paradise of palatial homes and swimming pools. He owns or holds interest in nearly three dozen companies that touch almost every aspect of the homebuilding process: companies that buy vacant land, companies that submit development plans to local governments, companies that build houses, and companies that sell water to residents. His real estate brokerage helps find buyers for homes built on his land, and he鈥檚 even got a company that builds swimming pools. 

Companies associated with Martin own more than 5,500 acres of land around Lahaina, according to an analysis of county records, making him one of the area鈥檚 largest private landowners, and his web of businesses wields immense influence in West Maui, which is home to about 25,000 people.

He drives his white Ford F-150 around the island with a large, black Bible on the center dashboard and peppers his conversations and emails with quotes from Scripture or libertarian economist Milton Friedman. He once served on the Maui County salary commission, where he helped determine pay for elected officials and county department heads, and he has donated $1.3 million to the Grassroot Institute of Hawaii, a libertarian think tank that has . So extensive is the reach of his land empire that the command center for the response to the August wildfires is located on land owned by a company in which he has a stake.

Development on Maui, where the median home price now exceeds $1 million, often sparks controversy, and Martin is far from the only builder who has inspired opposition. But his staunch ideological commitment to free market capitalism and Christianity, coupled with his companies鈥 persistent pushback against water regulations intended to protect Native Hawaiian rights, has evoked particularly passionate distaste among many locals. 鈥淔鈥 the Peter Martin types,鈥 reads one bumper sticker spotted in Lahaina. 

And that was before the wildfire. Just two days after the outbreak of , fueled in part by on Martin鈥檚 vacant land, an executive at one of Martin鈥檚 companies to the state water commission. Glenn Tremble, who works for West Maui Land Co., wrote that the company鈥檚 request to fill its reservoirs on the day of the fire had been delayed by the state. He also asked the commission to during the fire recovery. 

鈥淲e anxiously awaited the morning knowing that we could have made more water available to (the Maui Fire Department) if our request had been immediately approved,鈥 he wrote.

Tremble鈥檚 letter implied that a state official key to implementing local water regulations 鈥 and the first Native Hawaiian to serve as deputy director of the state water commission 鈥 had impeded firefighting efforts. He soon walked back the claim that the official was to blame for the fire, but his first letter had immediate effect. The state attorney general launched an investigation into the official, the governor suspended water regulations, and the official was temporarily reassigned. Critics saw it as an attempt to capitalize on the grief of the community for profit.

It didn鈥檛 help that within weeks, when the Washington Post asked about the role the invasive grasses on Martin鈥檚 land played in the deadly wildfire, Martin said he believed the fire over the state water restrictions. 

Most people in West Maui get water from the county鈥檚 public water system. But Martin-built developments such as Launiupoko, outside of Lahaina, draw their water from three private utility systems that he controls, siphoning underground aquifers and mountain streams to fill swimming pools and irrigate lawns. More than half of all water used in the Launiupoko subdivision, or around 1.5 million gallons a day, goes toward cosmetic landscaping on lawns, . Just over a quarter is used for drinking and cooking. 

The scale of this water usage is stunning: According to state data, Launiupoko Irrigation Co. and Launiupoko Water Co. deliver a combined average of 5,750 gallons of water daily to each residential customer in Launiupoko, or almost 20 times as much as the average American home. The development , but it uses almost half as much water as the public water system in Lahaina, which serves 18,000 customers. 

Martin says he didn鈥檛 set out to make Launiupoko a luxury development, but that its value spiked after Maui County imposed rules that on agricultural land. Martin鈥檚 development was grandfathered in under those restrictions, and demand for large homes drove up prices in the area. He says criticism of swimming pools and landscaped driveways is rooted in envy. 

(Grist/Clayton Aldern/Camille Fassett/Caleb Diehl)

鈥淧eople come over and make their land beautiful by using water,鈥 he said.

Martin also maintains that there鈥檚 more than enough water for everyone, but that doesn鈥檛 seem to be the case. Annual precipitation around Lahaina declined by about 10% between 1990 and 2009, drying out the streams near Launiupoko, and now Martin sometimes can鈥檛 provide water to all his customers during dry periods.

The underground aquifer in the area is also oversubscribed, , with Martin鈥檚 companies and other users pumping out 10% more groundwater than flows in each year on average. Climate change could exacerbate this shortage by worsening droughts along Maui鈥檚 coast: Projections from 2014 show that annual rainfall over the coming century under even a moderate scenario for global warming. 

In response, the state water commission has intervened to stop Martin and other developers from overtapping West Maui鈥檚 water, setting strict limits on water diversion and fining his companies for violating those rules. Last year, of the region鈥檚 water, potentially jeopardizing the future of Martin鈥檚 luxury subdivisions and making it harder for him to build more in the area. 

Now, though, Martin is poised to play a key role as West Maui recovers from the Lahaina wildfire, which destroyed 2,200 structures, including six housing units Martin had developed. Nine of his employees lost their homes.

, more than 6,800 displaced people on Maui remained in hotels or other temporary lodging. Millions of dollars in federal funds are expected to flow into the state for reconstruction.

Martin, with his dozens of development companies and thousands of acres of vacant land, is perfectly positioned to build new homes. And his concerns about water regulations slowing development may find a more sympathetic audience as local officials seek to address .  

Moreover, he is itching to build. Before the fire, county and state officials were shooting down most of his new building proposals amid a concern about overdevelopment, even the ones that Martin pitched as affordable workforce housing. Martin thinks he can mitigate West Maui鈥檚 fire risk and its housing crisis by getting rid of the barriers that prevent developers like himself from building more houses with irrigated farms and green lawns. 

鈥淲hat I just want is the water to be able to be used on the land, which God intended it to,鈥 he said.

Indigenous Farmer Depends On Martin To Keep Water Flowing

Daniel Ku驶uleialoha Palakiko doesn鈥檛 know what deity Martin is referring to. 

鈥淜e Akua is a God of love and restoration and abundant life,鈥 he told the water commission during September鈥檚 hearing, using the Hawaiian word for God. Palakiko had flown to Honolulu with many other Maui residents to urge the state officials to uphold their responsibility to protect water.

Palakiko doesn鈥檛 take his land, or water, for granted. He was a teenager in Lahaina in the 1980s when his family started getting priced out by rising rents. That鈥檚 when his dad remembered that his own father had once shown him the family鈥檚 ancestral land in nearby Kaua驶ula Valley. According to Palakiko鈥檚 grandfather, the family had been forced out by the Pioneer Mill sugar plantation, which had diverted the Palakikos鈥 water to irrigate crops. Palakiko鈥檚 family still owned the title to the land, and his father was determined to find a way to reclaim it.

First they cleared brush by cutting firebreaks and burning the overgrowth, controlling the flames with five-gallon buckets of water hauled from a nearby river. Once they had opened enough land to build a house, the Palakikos worked out a deal with Pioneer Mill to restore free water access to their property, connecting their home to the plantation鈥檚 water system with a series of 1陆-inch plastic pipes. 

Access to that water meant that the Palakikos could live on their ancestral land for the first time in generations. Back then, Palakiko says, their property felt isolated from Lahaina, accessible only by old cane field roads that could take 45 minutes to reach town. But the family didn鈥檛 mind. It was enough to be able to stay on Maui when so many other Native Hawaiians were forced by economic necessity to leave. 

That isolation didn鈥檛 last. In 1999, , ending 138 years of cultivation in Lahaina. The abandoned fields turned brown and Palakiko heard that the company was selling off thousands of acres. Where once the Palakikos had seen Filipino plantation workers tending to crops, they noticed fair-skinned strangers and surveyors exploring the fallow grounds. 

The Palakikos soon realized that the land was now in the hands of Peter Martin, who had joined other local investors to buy everything he could of the old plantation land. These new owners soon subdivided the land and sold parcels at ever higher prices as demand for the area known as Launiupoko kept increasing. It didn鈥檛 matter that the area was zoned for agriculture: Like many other developers, Martin that allowed homeowners to build luxurious estates on such land as long as they did some token farming of crops like fruit or flowers, no matter how perfunctory it might be.

By the time Martin finished the development, which included around 400 homes on around 1,000 acres, he was diverting almost 4 million gallons from the stream every day, , almost as much as the 4.8 million gallons Pioneer Mill had diverted each day before it shut down.

Some days the Palakiko family would wake up to find no water running through the pipes. By the afternoon, puddles along the stream would evaporate and fish would flop on the hot rocks, suffocating. It wasn鈥檛 just the Palakikos who were suffering, but the whole river system: As Martin diverted water from the mountains, the waterway dried up farther downstream, threatening the native fish and shrimp that lived in it.

Palakiko appealed to Martin鈥檚 new water utility, Launiupoko Irrigation Company, but he said the company was hostile. First it tried to shut off the water the family had been receiving through plastic pipes, then asked the family to pay for water they鈥檇 always drawn for free, only relenting after the Palakikos fought back.

Daniel Ku驶uleialoha Palakiko kneels next to a taro plant on his family farm. The starch is a traditional part of the Native Hawaiian diet and is also spiritually important: Indigenous histories describe Hawaiians as being descended from the plant, known as kalo. (Cory Lum/Grist/2023)
Daniel Ku驶uleialoha Palakiko kneels next to a taro plant on his family farm. The starch is a traditional part of the Native Hawaiian diet and is also spiritually important: Indigenous histories describe Hawaiians as being descended from the plant, known as kalo. (Cory Lum/Grist/2023)

In addition to diverting water away from Native Hawaiian families, Martin has tried to force some from their land. In 2002, his Makila Land Co. filed a so-called 鈥渜uiet title鈥 case against the Kapus, another farming family whose land borders the Palakikos, seeking to claim a portion of the family鈥檚 ancestral land as its own. This legal strategy, which allows landowners to take control of properties that may have multiple ownership claims, later gained notoriety when .

When the Kapus fought back, the company kept them in court for almost two decades, to gain the rights to a 3.4-acre parcel. The situation between Martin and the Kapu family became so tense that in 2020, Martin against one member of the family, Keeaumoku Kapu, accusing him of 鈥渧erbally attack(ing) me with an expletive-laced tirade鈥 and blocking Martin鈥檚 access to the disputed land. The court imposed a mutual injunction against Martin and Kapu later that year; two years later, and secured the title to his property.

Martin鈥檚 companies filed multiple quiet-title lawsuits over the years as Martin sought to consolidate control of the land around Launiupoko. Just after it began litigation against the Kapus, Makila Land Co. made a similar claim against a neighboring taro farmer named John Aquino, seeking to seize a portion of the land belonging to Aquino鈥檚 family.

The company in an appellate court in 2013, but the Aquino family stayed put. Police arrested Aquino in 2020 after two of Martin鈥檚 employees drove a semi onto the land; Aquino had with a baseball bat. Makila later in 2021 against Brandon and Tiara Ueki, who also live near the Kapus.

The parties after an apparent settlement. More recently, Martin has fanned even more frustration by selling properties with contested titles, prompting at least one ongoing legal battle.

Meanwhile, Martin and his fellow investors sought to expand to other parts of West Maui with several large-scale developments in areas along the coastline. In one instance, he and another pair of developers named Bill Frampton and Dave Ward , including both single and multifamily housing units, in the small beachfront town of Olowalu, even though water access in the area is minimal and rainfall is declining.

The developers later following , but in the meantime, Martin sold off a few dozen more lots in Olowalu, where he has a home. He also created another utility, Olowalu Water Co., to supply homes in the area with stream water.

Hawaii, like most of the Western United States, allocates water using a 鈥渞ights鈥 system: A person or company can own the right to draw from a given water source, often on land they own, but they can鈥檛 own the water source itself. In states like and , this system has led to conflicts between settlers and tribal nations, but in Hawaii the law provides explicit protection for Native Hawaiian users. that traditional and cultural uses, such as taro farming, 鈥渟hall not be abridged or denied.鈥 In times of shortage, Native users have the highest priority.

In 2018, the state water commission on several West Maui streams, capping the amount of water that Launiupoko Irrigation Co. and Olowalu Water Co. could divert at any given time.

Palakiko had mixed feelings about this: He didn鈥檛 want to cede more control over the water that his family had used for generations, but it felt necessary in order to ensure someone could hold the companies accountable.

Even after these rules took effect, though, Martin鈥檚 water utility companies violated them dozens of times. When the state , Launiupoko Irrigation Co. stopped taking water from its stream completely. Residents of the lush Launiupoko subdivision soon had to ration irrigation water, and the Palakikos lost their access altogether. Their pipes stayed dry for more than a week until to turn on the tap back on.

Developer Peter Martin told Grist that concern about invasive grass fueling wildfires is a 鈥渞ed herring,鈥 and asked, 鈥淗ow could this stuff that鈥檚 8 inches, or 10 or 12 inches, or very low on the ground be the culprit?鈥 (Cory Lum/Grist/2023)
Developer Peter Martin told Grist that concern about invasive grass fueling wildfires is a 鈥渞ed herring,鈥 and asked, 鈥淗ow could this stuff that鈥檚 8 inches, or 10 or 12 inches, or very low on the ground be the culprit?鈥 (Cory Lum/Grist/2023)

As the state cracked down on stream diversions, Martin sought to secure more water by tapping an aquifer beneath Lahaina. Here again, he was accused of infringing on Native Hawaiian cultural resources: When his West Maui Construction Co. started in 2020, it excavated an area that , triggering protests. Five Native Hawaiian women activists to stop the construction project and were arrested. A judge later found the company broke the law by starting construction on the water line without all the requisite permits.

The new restrictions started to hamper Martin鈥檚 development activities. Last year, his Launiupoko Water Co. for permission to deliver water to a new area near Lahaina. The company said it had agreed to supply a nearby landowner with potable water for 11 new homes, and told the state it needed to increase its groundwater pumping by at least 65,000 gallons per day.

The regulator , saying the company had omitted 鈥渂asic information鈥 about where it would get this new water. The landowner that would have received the water was another company in which Martin has an ownership stake.

Even as his companies鈥 plans faced headwinds, Martin . He loaned Launiupoko Irrigation Co. a total of $9 million in recent years as the company tried to expand its Lahaina well system, charging 8% interest. The company tried in 2021 to secure a bank loan for the project, but , with one noting that the company鈥檚 鈥渋nterest payments to Pete鈥 were 鈥渟ubstantial.鈥

Glenn Tremble, a top executive at West Maui Land Co., the company at the center of Martin鈥檚 development empire, said in response to a list of questions that Grist鈥檚 statements were 鈥済enerally false and often libelous.鈥 Tremble noted that Martin has built affordable housing units on West Maui and donated to churches. He said that Martin is 鈥渨ell positioned to assist with recovery and efforts to rebuild.鈥 

If Martin鈥檚 track record with water and land made him infamous in Lahaina, it also invigorated local support for even stricter water controls. Palakiko鈥檚 long campaign for more attention to the region鈥檚 water problems finally bore fruit last year when Instead of just setting limits on how much water Martin鈥檚 companies could take from West Maui streams at any given time, the state water commission announced that it would revamp the area鈥檚 entire water system, giving highest priority to Indigenous cultural uses like taro farming. That may mean limiting access for Martin鈥檚 luxury developments, though Tremble disputes this.

(Grist/Clayton Aldern/Camille Fassett/Caleb Diehl)

鈥淲e鈥檝e heard a lot from the community about the development of West Maui Land鈥檚 holdings in Launiupoko,鈥 said Dean Uyeno, the interim chair of the state water commission, about the decision. 鈥淭o continue building in these types of ways is going to keep taxing the resource.鈥

The question, Uyeno said, is whether developers 鈥渃an 鈥 find a way to (be) building more responsible development that balances the resources we have.鈥

Martin thinks the argument that water is a scarce resource is a 鈥渞ed herring.鈥 He argues that the market is calling for more housing, not more water for native fish that rely on the streams.

鈥淎ll the people (who) ever come to me say, 鈥楶eter, can you get me a house? I want a place to live,鈥欌 he said. 鈥淭hey don鈥檛 go, 鈥極h, I wish I had (shrimp) for dinner.鈥 That鈥檚 not what people tell me. They say, 鈥楥an鈥檛 you give me some house, some land?鈥 I go, 鈥業鈥檇 love to but the government won鈥檛 let me.鈥欌

Fighting For More Water

In the days before the wildfire, Martin鈥檚 executives worked long hours in his West Maui Land Co. office filling out 30 state applications justifying their current water usage and seeking more, in accordance with the state鈥檚 revamp of the area鈥檚 water system. They submitted the applications just days before the state鈥檚 Aug. 7 deadline. The day after the deadline, Lahaina burned. 

To Martin, this is not a coincidence. He believes the state water commission鈥檚 efforts to more strictly regulate water enabled the fire by preventing more construction of homes with irrigated lawns 鈥 in other words, more development would have made West Maui more resilient to fire. The day before the water commissioners met in September, he wondered if the commissioners would acknowledge their responsibility for the wildfire deaths and regretted not pushing harder against their restrictions.

鈥淚 feel I actually have blood on my hands because I didn鈥檛 fight hard enough,鈥 he said.

There鈥檚 no evidence that the state management rules, which are still in the process of going into effect, had any bearing on the fire. When Grist relayed this argument to the interim leader of the state鈥檚 water commission, he was stunned.

鈥淭hat actually leaves me speechless,鈥 said Uyeno. 鈥淚 don鈥檛 know how to respond to that.鈥

Palakiko and his family spent the day of the fire watching the smoke rising from the coastline, watering the grass on their property and praying the winds wouldn鈥檛 shift, sending the flames their way. Five years earlier, another fire fueled by a passing hurricane had burned down two homes on their land. 

That day, their prayers were answered. But when Palakiko鈥檚 son, a firefighter, came home shaken from his shift fighting the blaze, the family realized that the West Maui they had known their whole lives was gone. 

Two days later, Palakiko received another shock when he read Tremble鈥檚 letter accusing Kaleo Manuel, the deputy director of the water commission, of delaying the release of firefighting water. The letter argued that Manuel had waited to release water to West Maui Land Co.’s reservoir until he had checked with the owners of a downstream taro farm. That farm belongs to the Palakikos. 

The company鈥檚 allegations were explosive. The state attorney general and requested that the commission reassign Manuel, who had been instrumental in establishing the Lahaina water management area and was the only Native Hawaiian to ever hold that position.

Gov. Josh Green that limit how much water Martin鈥檚 companies and other water users can draw from West Maui streams. The state later and restored the rules.

In a statement to Grist, Tremble said he respects Manuel鈥檚 鈥渃ommitment and his integrity鈥 and said that 鈥渢he problem is the process, or lack thereof, to provide water to Maui Fire Department and to the community.鈥

While there was no evidence that filling the reservoir would have stopped the fire from destroying Lahaina, and firefighting helicopters wouldn鈥檛 have been able to access the reservoir , there鈥檚 a growing consensus among scientists in Hawaii that one factor in its rapid spread was 鈥 including lands that Peter Martin owns. 

Before the overthrow of the Hawaiian Kingdom in 1893, before the dominance of the sugar industry allowed plantations to divert West Maui鈥檚 streams, Hawaiian royalty lived on a sandbar in the midst of a large fishpond within , which was known as the Venice of the Pacific.

After plantation owners diverted streams for their crops, the royal fishpond became a stagnant marsh, and later was filled with coral rubble and paved over. Now, Palakiko imagines what it would be like if the streams were allowed to resume their original paths: what trees would grow, what native grass could flourish, what fires might be stopped. He doesn鈥檛 think this vision is at odds with the need to address Maui鈥檚 housing crisis.

For Palakiko, the fight over the future of water in Lahaina is about more than just who controls the streams in this section of Maui. It鈥檚 also in some ways a referendum on what future Hawaii will choose: one that reflects the worldview of people like Palakiko, who see water as a sacred resource to be preserved, or that of people like Martin, who sees it as a tool to be used for profit.

To Martin, such a shift is unsettling.

鈥淚 mean, for a hundred years, you could take all the water, and all of a sudden these guys come in, and say, 鈥極h, you can鈥檛 take any water,’鈥 Martin said. 鈥淎nd they made it sound like I鈥檓 this terrible person.鈥

Support Independent, Unbiased News

Civil Beat is a nonprofit, reader-supported newsroom based in 贬补飞补颈驶颈. When you give, your donation is combined with gifts from thousands of your fellow readers, and together you help power the strongest team of investigative journalists in the state.

 

About the Author