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For CWFP & SDWLP information, contact:
Environmental Loans staff

Intermunicipal agreements for the SDWLP

Sections NR 166.10(2)(h) and NR 166.11(1)(g) of the Wisconsin Administrative Code provide that an intermunicipal agreement is necessary when either:

  1. an applicant municipality's water is obtained from facilities of another municipality; or
  2. another municipality is obtaining water from the applicant's facilities.

The intermunicipal agreement is a contract between two or more municipalities, which defines the responsibilities of each municipal entity. The Safe Drinking Water Loan Program (SDWLP) reviews the conditions of the contract to assure the conditions are consistent with the requirements of statutes and administrative code.

The final executed intermunicipal agreement must:

  • identify ownership for each individual portion of the water system;
  • establish the term of the agreement;
  • demonstrate the basis for generating revenue for operation, maintenance, depreciation and tax equivalent costs based on actual use, and state who is responsible for paying for these charges;
  • indicate the method for generating revenue for capital costs and who is responsible for payment;
  • indicate that the owner of the regional facility shall provide the applicant's water; and
  • require that each entity adopt a user fee system and water use ordinance, if applicable.

Read more about the specific requirements for intermunicipal agreements on page four of E-Bulletin Volume 9, Issue 04.

Contact information
For information on this topic, contact:
SDWLP Coordinator or Matt Marcum

Disclaimer of guidance: This document is intended solely as guidance and does not contain any mandatory requirements except where requirements found in statute or administrative rule are referenced. Any regulatory decisions made by the Department of Natural Resources in any matter addressed by this guidance will be made by applying the governing statutes and administrative rules to the relevant facts.

Last revised: Wednesday April 22 2020