Water Agencies Beware Before Proceeding with Forced Municipalization -

California’s state water system serves roughly 40 million people and irrigates nearly 10 million acres of farmland. The 2023 water year was ranked as California’s 10th wettest since record keeping began 128 years ago. Despite the influx of rain, water remains scarce. Consequently, governments such as cities and counties have turned to using the power of eminent domain to acquire investor-owned utilities (IOUs) through condemnation under the theory of improving water service and costs for their communities. This process of a government acquiring an investor-owned utility is called “municipalization”. Municipalization of IOUs through eminent domain, however, is more difficult than traditional condemnation because IOUs have the right to contest the government’s findings authorizing the use of their eminent domain powers.