Arkansas Code
Subchapter 5 - Joint Systems
§ 14-234-507. Location of system — Sale of water — Ownership of distribution system

(a) Municipalities are authorized to construct waterworks systems or any integral part thereof either inside or outside the limits of the municipalities and inside and outside the limits of the county in which the municipalities are located.
(b)
(1) A municipality purchasing or constructing a waterworks system or integral part thereof may sell the water to private consumers located inside and outside of the municipality.
(2) It may sell a part of the water to an improvement district, or it may sell the water or a part thereof to a private corporation engaged in the business of selling water to private consumers in the municipality.

(c) Nothing in this section shall authorize any city or improvement district to sell its existing plant to a private corporation.
(d) Each municipality shall own its own distribution system, and the several municipalities together may own jointly, on whatever terms they may agree upon, whatever of the waterworks systems that serves the several municipalities jointly.

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