Michigan has become the first U.S. state to sign a water technologies partnership agreement with Israel.

Gov. Jennifer Granholm signed the agreement Monday during her seven-day trade trip to the Mideast.

She and Deputy Prime Minister Eli Yshai say the joint declaration establishes a working group between the two governments to focus on energy efficiency and technology that will improve water quality and increase water reuse.

Israel has expertise in water purification and technologies.

Granholm met earlier Monday with Israeli Prime Minister Ehud Olmert.

On Sunday, the governor was a keynote speaker at a reception hosted by the Michigan Israel Business Bridge and the Israel Export Institute. She also met with companies with Michigan ties. She had plans to pitch Michigan as an investment site to 130 companies, saying it is important to work on diversifying the state's economy.

The trip was expected to focus on alternative energy companies as well as defense, homeland security and biotech firms in Israel and Jordan. She and Michigan Economic Development Corp. officials also will meet with a company developing infrastructure for electric cars in Israel.

"Clearly the electric vehicle presents a huge opportunity for the auto industry in this country," Granholm said.

It's Granholm's seventh overseas trade trip in the past four years.