Arkansas Code
Subchapter 4 - Operation of Water Districts
§ 14-116-402. District powers

(a) Each water district shall have power to:
(1) Sue and be sued and complain and defend in the district's name;
(2) Adopt a seal which may be altered at pleasure and to use it, or a facsimile thereof, as required by law;
(3) Acquire absolute title to and use for any purpose and at any place water stored in any reservoir or other water source created by the construction of a multipurpose dam by or under the direction and supervision of the United States Army Corps of Engineers, or by the water district with federal financial or other assistance furnished by the United States Secretary of Agriculture under the provisions of the Watershed Protection and Flood Prevention Act, as amended, or with financing provided by any federal, state, or other source;
(4) Acquire water storage and withdrawal rights in any reservoir or other water source created by the construction of a multipurpose dam by or under the direction and supervision of the United States Army Corps of Engineers, or by the water district with federal financial or other assistance furnished by the United States Secretary of Agriculture under the provisions of the Watershed Protection and Flood Prevention Act, as amended, or with financing provided by any federal, state, or other sources;
(5) Transport, distribute, sell, furnish, and dispose of the water from whatever source derived to any person at any place;
(6) In the case of a district in existence on January 1, 2001, other than districts the lands in which are subject to assessment under § 14-116-601 et seq., collect, transport, treat, and dispose of sewage and liquid waste and own, acquire, operate, construct, equip, improve, expand, contract concerning, or otherwise deal in and with regard to facilities for any or all of the purposes;
(7) Construct, erect, purchase, lease as lessee and in any manner acquire, own, hold, maintain, operate, sell, dispose of, lease as lessor, exchange, and mortgage real property, personal property, easements, interests in real property, plants, buildings, works, machinery, supplies, equipment, apparatus, facilities, property rights, and transportation and distribution lines, facilities, equipment, or systems necessary, convenient, or useful;
(8)
(A) Regulate, define, and control the rate and location of any withdrawal or transfer of water which is owned, acquired, or developed by the water district in natural or manmade channels.
(B) However, riparian owners of natural watercourses are not obligated to pay for their historical riparian use from such natural water courses;

(9)
(A) Authorize persons to enter for any purpose water which has been or is being transported or is held by the water district, but only if the water district has acquired absolute title to land under the water or has obtained permission of the owner of the land under the water.
(B) However, this subdivision (a)(9) does not limit a district's authority to enter on lands for inspection or other purposes consistent with the purposes of this chapter;

(10) Assist its customers in the preparation of their premises for the use of water furnished by the water district and install upon the premises fixtures, machinery, supplies, apparatus, and equipment of any and all kinds and character, and in connection therewith, and for that purpose, to purchase, acquire, lease, sell, distribute, install, and repair fixtures, machinery, supplies, apparatus, and equipment of any and all kinds and character and to receive, acquire, endorse, pledge, hypothecate, and dispose of notes, bonds, and other evidences of indebtedness;
(11) Acquire, own, hold, use, exercise, and to the extent permitted by law, to sell, mortgage, pledge, hypothecate, and in any manner dispose of franchises, rights, privileges, licenses, rights-of-way, and easements necessary, useful, or appropriate;
(12) Purchase, receive, lease as lessee, or in any other manner acquire, own, hold, maintain, sell, exchange, and use any and all real and personal property, or any interest therein;
(13)
(A) Borrow money and otherwise contract indebtedness, to issue its obligations therefor, and to secure the payment thereof by mortgage, pledge, or deed of trust of all or any part of its property, assets, franchises, rights, privileges, licenses, rights-of-way, easements, revenues, or income.
(B) The obligations may be in the form of negotiable bonds but may be registered as public obligations under the Registered Public Obligations Act of Arkansas, § 19-9-401 et seq., may be issued in one (1) or more series, may bear such date or dates, may mature at such times, not exceeding forty (40) years from their respective dates, may bear interest at rate or rates, may be in such form, may be executed in such manner, may be payable in such medium of payment, may be payable at such place or places, within or without the State of Arkansas, may be subject to such terms of redemption, and may contain such terms, covenants, and conditions as the resolution of the board authorizing the bonds may provide.
(C) The resolution of the board authorizing the bonds may provide for the execution by the water district of a trust indenture with a bank or trust company, within or without the State of Arkansas, which defines the rights of the holders and registered owners of the bonds and provides for the appointment of a trustee for the holders and registered owners of the bonds.
(D) The trust indenture may control the priority between successive issues and may contain such other terms, covenants, and conditions that are deemed desirable including, without limitation, those pertaining to the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the maintenance and investment of various funds and reserves, the nature and extent of the security, the rights and duties of the water district and the trustee for the holders or registered owners of the bonds, and the rights of the holders or registered owners of the bonds.
(E) The bonds may be sold at such price, including sale at a discount, and in such manner as the board may determine.
(F) All bonds, whether previously or subsequently issued pursuant to the provisions of this section, shall be exempt from all state, county, and municipal taxes;

(14) Sell and convey, mortgage, pledge, lease as lessor, and otherwise dispose of all or any part of its property, assets, franchises, rights, privileges, licenses, rights-of-way, and easements;
(15)
(A) In connection with the acquisition, construction, improvement, operation, or maintenance of its transportation and distribution lines, systems, equipment, facilities, or apparatus, use the bed of any stream without adversely affecting existing riparian rights, any highway or any right-of-way, easement, or other similar property rights, or any tax-forfeited land owned or held by the State of Arkansas or any political subdivision.
(B) However, this subdivision (a)(15) does not entitle riparian users to receive water owned, acquired, or developed by the water district without paying the district's water user charges;

(16)
(A) Have and exercise the right of eminent domain for the purpose of acquiring rights-of-way and other properties necessary in the construction or operation of its property and business in the manner now provided by the condemnation laws of this state for acquiring private property for public use.
(B) However, the power under subdivision (a)(16)(A) of this section shall not be used by an irrigation water district for the acquisition or construction of private on-farm irrigation reservoirs or natural watercourses, and any surplus property obtained by an irrigation water district under this power shall be first offered to the person or persons owning the remaining property from which it was taken at the price paid as eminent domain damages before it may be sold to others;

(17) Accept gifts or grants of money, services, franchises, rights, privileges, licenses, rights-of-way, easements, or other property, real or personal;
(18) Make any and all contracts necessary or convenient for the exercise of the powers granted in this chapter;
(19)
(A) Fix, regulate, and collect rates, fees, rents, or other charges for water and any other facilities, supplies, equipment, or services furnished by the water district.
(B) Rates shall be just, reasonable, and nondiscriminatory.
(C)
(i) If any district distributes water to consumers outside the district, the rates, fees, rents, and other charges for water and other facilities, supplies, equipment, or services furnished to consumers outside the district shall be calculated to pay the cost of such distribution outside the district.
(ii) No part of the cost of distributing water or providing other services outside the district shall be borne by the members of the district, and there shall be no increase in the cost to members in the district as a result of furnishing water to consumers outside the district;

(20) Conduct its affairs within and without this state;
(21) Elect, appoint, or employ officers, agents, and employees of the water district and define their duties and fix their compensation;
(22) Do and perform all acts and things and have and exercise any and all powers as may be necessary, convenient, or appropriate to effectuate the purposes for which the water district is organized;
(23) Accept appropriations from the state upon such terms and conditions as may be imposed by law or rule to be used in the furtherance of the purposes for which the water district was created; and
(24) With notice, enter upon any land within or outside the water district for inspection purposes or other purposes as are necessary, convenient, and not inconsistent with the purposes of this chapter.

(b) Notwithstanding the powers conferred by this section, a water district shall comply with all laws of the State of Arkansas regarding the acquisition, storage, transportation, distribution, treatment, or disposal of water, including, without limitation, laws related to minimum stream flow, nonriparian water use, groundwater use, Arkansas Water Plan compliance, and public water supply.
(c)
(1)
(A) Notwithstanding any other provisions of this chapter, no irrigation district shall have the power to acquire title to or use any water stored in any reservoir created by a dam constructed before July 1, 1995, or to acquire water storage or withdrawal rights in any such reservoir.
(B) Subdivision (c)(1)(A) of this section shall not apply to United States Army Corps of Engineers projects whose main purpose is navigation.

(2) Irrigation districts may obtain water from wells, from excess surface water as defined in § 15-22-304(b), and from reservoirs constructed after July 1, 1995.