Court ruling stalls Queen Creek water company purchase

waterBy Chase Kamp | Southeast Valley Ledger

A recent ruling by the state appeals court in a Marana water case has halted the efforts by the Town of Queen Creek to acquire H2O Inc., a local water company that currently serves 3.5 square miles of the town and large swaths of northern San Tan Valley. The acquisition, which officials say would enhance the Town’s municipal water system and better prepare for expected population growth, will now be put to the voters in a mail-only special election beginning Apr. 25.

Town manager John Kross said the Town completed an agreement with H2O Inc. to envelop the company’s assets and service area into the Town’s own municipal water company for $44 million in Dec. 2012.

However, a ruling passed down that month by the Court of Appeals in Town of Marana vs. Pima County that forced municipalities to ask voters for approval to expand on existing municipal water systems was upheld by the state Supreme Court in Jan. 2013.

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