# Local Government (GLG)

## Title 1. Definitions; General Provisions

### Subtitle 7. Limits on Competition; Franchises

#### Section 1-704

(a) It is the policy of the State to authorize each county and municipality to displace or limit competition in the area of water and sewerage systems to:

  (1) assure delivery of adequate, economical, and efficient water and sewerage services;

  (2) avoid duplication of water and sewerage facilities;

  (3) control disease and provide for the public health and safety;

  (4) prevent environmental degradation;

  (5) protect natural resources;

  (6) use the public right-of-way efficiently; and

  (7) promote the general welfare by providing adequate water and sewerage systems.

(b)

  (1) Notwithstanding any anticompetitive effect, a county or municipality may:

    (i) grant one or more franchises or enter into contracts for water or sewerage systems on an exclusive or nonexclusive basis;

    (ii) impose franchise fees;

    (iii) establish charges and rates applicable to the franchise; and

    (iv) adopt rules, regulations, and licensing requirements for the operation of the franchise.

  (2) If another law grants a county or municipality the authority to operate water and sewerage systems, the county or municipality shall operate the systems without regard to any anticompetitive effect.

---

Md. Code Ann., Local Gov't (as displayed at mgaleg.maryland.gov, October 16, 2026)