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Legislature Limits
Government Water
Utilities’ Authority to
Mandate Connections
By Kara Millonzi
he governing boards of several government-
owned or operated water and sewer utilities
currently have the authority to mandate
connection of certain properties to their
water systems. The authority extends to
municipalities, counties, sanitary districts,
and water and sewer authorities (hereinafter
referred to as “government utilities”).
Specifically, each local unit may require “the
owner of developed property on which there
are situated one or more residential dwelling units or commercial
establishments” located within the territorial jurisdiction of the
government utility and within a reasonable distance of the water line . . .
owned, leased as lessee, or operated by, or on behalf of, the government
utility “to connect the owner’s premises with the water [ ] line and may
fix charges for these connections.” See G.S. 160A-317 (municipalities);
G.S. 153A-284 (counties); G.S. 130A-55(16) (sanitary districts); G.S.
162A-6(a)(14d) (water and sewer authorities); see also G.S. 162A-14(2)
(interlocal agreement between the political subdivision and a water and
sewer authority). (A sanitary district and water and sewer authority may
only exercise this authority if the water service is not being provided to
the property by another government utility or by a private utility that is
regulated by the North Carolina Utilities Commission.)
As of August 1, 2016, counties, municipalities, sanitary districts,
and water and sewer authorities will be prohibited from mandating
connection to their water systems under certain circumstances. This
post summarizes the new law and provides a guide for government
utilities as to when it applies and what it prohibits.
The new provisions are found in G.S. 87-97.2. They were enacted in
conjunction with expanded drinking water well permitting requirements.
S.L. 2015-246.
Drinking Water Well Permitting Requirements
Effective August 1, 2016, section 3.5d of S.L. 2015-246 requires a local
government to issue a permit to a property owner for a private drinking
water well under the following circumstances:
1. If the property is undeveloped or unimproved, the local
government must issue the permit even if the property could be
served by a government utility.
2. If the property is developed or improved, the local government
must issue the permit, only if the government utility has not yet
installed water lines directly available to the property or if the
government utility cannot provide water service to the property at
the time the property owner desires service.
Prohibition on Mandated Connections
Again, effective August 1, 2016, once a drinking water well permit is
issued for a particular property, a government utility may not mandate
connection of that property to its water system, as long as the permitted
well remains compliant and in use. A property owner, who has been
issued a drinking water well permit, may choose to connect to the
public water system, but he/she may not be compelled to do so.
A government utility may continue to mandate connection of any
developed or improved property located within its jurisdiction, and
within a reasonable distance of its water lines, if a drinking water well
permit has not been issued for the property.
Furthermore, there are a few exceptions to the mandated connection
prohibition, even if a drinking water well permit has been issued. A
government utility may still mandate connection to its water system
of a property for which a permit has been issued if one or more of the
following apply:
1. The private drinking water well serving the property has failed
and cannot be repaired. The statute does not specify who
determines whether or not the well can be repaired. It is up
to the government utility to establish a process to verify the
functionality of each private drinking well.
2. The property is located in an area where the drinking water
removed by the private drinking water well is contaminated or
likely to become contaminated due to nearby contamination.
This determination is made or confirmed by the local health
department. See G.S. 87-97.
Winter 2015
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