Arkansas Code
Subchapter 2 - Purchase and Construction
§ 14-234-203. Authority of municipalities

(a) Municipalities are authorized to purchase or construct a waterworks system or any integral part thereof and to purchase and hold title to, lease, or rent in connection therewith any land, lake, watercourse, or water supply either inside or outside the limits of the municipality or inside or outside the limits of the county in which the municipality is located.
(b)
(1) In any municipality located in a county, the border line of which adjoins any other state, the municipality may take title to or lease or rent any land, lake, watercourse, or water supply outside this state.
(2) The ownership or lease of any land, lake, watercourse, or water supply located outside this state which has been acquired by any municipality previous to the passage of this subchapter is declared to be a valid exercise of the power of the municipality and shall remain in effect the same as if the acquisition by purchase or lease thereof had been made after the passage of this subchapter.

(c) Municipalities are authorized to construct a waterworks system or any integral part thereof either inside or outside the limits of the county in which the municipality is located.
(d) A municipality constructing a waterworks system or integral part thereof may sell the water to private consumers located inside and outside of the municipality. It may sell a part of the water to an improvement district, or it may sell the water or a part of it to a private corporation engaged in the business of selling water to private consumers in the municipality.
(e) Nothing in this section shall authorize any city or improvement district to sell its existing plant to a private corporation.

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