The California Highway Patrol says the crash happened around midnight Wednesday at the Delta-Mendota Canal near Gustine.
Officers say 21-year-old Elixandro Miranda was driving a dune buggy on the canal bank near Route 140 at Gravel Pit Road when he got disoriented and crashed into the canal.
Miranda and two of his three passengers were able to get to safety, but a woman in her 20s is still missing.
Investigators say Miranda left the scene but was later arrested and booked into the Merced County jail.
The dune buggy has been recovered.
Stay with ABC30 for the latest details on this developing story.