Protecting The Territory of Federally Indebted Rural Water Associations/Districts/Non-Profits

Title 7 United States Code §1926(b) was enacted by the United States Congress to (1) encourage the development of rural water systems throughout the United States, (2) enable federally indebted water associations to provide a cost effective and safe supply of water to rural residents and (3) provide a secure means to repay government loans. This statute grants federally indebted water associations/districts complete exclusivity in selling water within their service area. Since the enactment of §1926(b), federally indebted water associations/districts have been compelled to file suit in Federal Court to enforce their lawful right to be the exclusive water service provider within their service area. The following are some examples of Court proceedings and other challenges encountered by Rural Water.