# Public Utilities (GPU)

## Title 23. Water, Sewers, and Drainage

### Subtitle 1. Water and Sewer Systems

#### Section 23-101

(a) The Commission shall develop surveys, plans, specifications, and estimates for water supply and sanitary sewer systems in the portions of the sanitary district that the Commission considers necessary.

(b) The Commission shall divide the sanitary district into water or sanitary sewer districts that in the Commission's judgment:

  (1) best serve the needs of the communities in the sanitary district; and

  (2) promote the convenience and economy of the installation and operation of water supply and sanitary sewer systems.

(c) The Commission may proceed with construction that the Commission considers advisable in any district.

(d) If the Commission initiates construction without petition or request from an interested party, the Commission may give reasonable notice that the Commission considers advisable.

(e)

  (1) The Commission may extend its water supply or sewer systems into any area outside of the sanitary district that is contiguous to or in the vicinity of the sanitary district if the property owners of the area agree to the conditions imposed by the Commission.

  (2) Except as provided in this division, the powers and authority in this subsection may not be restricted by any other general, special, or local law.

(f) The Commission may not install, operate, or exercise any authority over stormwater management in Montgomery County.

#### Section 23-102

(a) A privately owned or municipally owned water supply or sanitary sewer system or part of a system, water main, sewer, water purification or sewage disposal plant, or connection with these facilities may not be constructed or installed, except as provided in this section.

(b) A municipality or the property owners or residents of a locality in the sanitary district may construct and operate a water supply or sanitary sewer system or part of a system at their own expense if the Commission decides that it is inexpedient or impracticable to build the system due to remoteness from the Commission's general system or for other reasons.

(c)

  (1) A system constructed in accordance with subsection (b) of this section shall be constructed under plans and specifications submitted to and approved by the Commission.

  (2) The construction, maintenance, and operation of the system shall be under the supervision and general control of the Commission.

(d) All construction and operating records for the system, including cost records, shall be filed with the Commission.

(e) The Commission may take over the system or a part of the system, water main, sewer, water purification or sewage disposal plant, or connection with these facilities in the same manner as provided in Sec. 23-103 of this subtitle.

(f) Except as provided in this division, the powers and authority in this section may not be restricted by any other general, special, or local law.

#### Section 23-103

(a) The Commission may purchase a municipally or privately owned water supply or sewer system if the Commission:

  (1) extends its general water supply or sewer system to the municipally or privately owned water supply or sewer system and is ready to connect with the system; or

  (2) considers the purchase to be expedient, advisable, and proper for the adequate operation of the system under the Commission's jurisdiction.

(b) If the Commission and the owner of a municipally or privately owned water supply or sewer system fail to agree to the purchase price or conditions of purchase of the water or sewer system, the Commission may acquire the system by condemnation, as provided in this division.

#### Section 23-104

(a) If a privately owned water or sewer system is the subject of a condemnation proceeding under this division, a jury in the proceeding shall determine the fair market value as provided for in Sec. 12-105(b) of the Real Property Article.

(b)

  (1) If the Commission condemns a privately owned system, the Commission shall take the system free and clear of all debts and liens.

  (2)

    (i) The Commission shall make a party defendant any person that has a recorded lien or encumbrance against the privately owned system.

    (ii) The circuit court may determine the respective amounts due the defendants.

(c) After the payment into the court or to the proper parties:

  (1) the Commission may take possession of, maintain, and operate the private system; and

  (2) all properties along the line of any water main or sewer of the private system shall stand in the same relation, bear the same benefit assessment, and be subject to the same regulations and penalties as though the private system had been constructed and put into operation by the Commission under the provisions of this division.

(d) A building or premises properly connected with the acquired private system at the time of its purchase is not subject to the connection charge specified under Title 25, Subtitle 3 of this article.

(e)

  (1) If the Commission considers that a privately owned water or sewer system is unfit, in whole or in part, for incorporation with the Commission's system, the Commission shall:

    (i) disregard the existence of the system or unfit part of the system; and

    (ii) extend the Commission's system to serve the area served by the existing system or unfit part of the system.

  (2) All of the provisions of this division relating to systems constructed by the Commission apply to an extension under paragraph (1) of this subsection.

#### Section 23-105

(a) After the payment for the acquisition is made to the court or to the municipality:

  (1) the Commission may take possession of, maintain, and operate a municipally owned water or sewer system; and

  (2) all properties along the line of any water main or sewer of the municipal system shall stand in the same relation, bear the same benefit assessment, and be subject to the same regulations and penalties as though the municipal system had been constructed and put into operation by the Commission under the provisions of this division.

(b) A building or premises properly connected with the acquired municipal system at the time of its purchase is not subject to the connection charge specified under Title 26, Subtitle 3 of this article.

(c) If outstanding bonds exist for a municipal system acquired by the Commission:

  (1) the municipality may use the amount paid by the Commission for the system for the purchase or redemption of any bond or debt that may be outstanding against the system; or

  (2) the Commission, as a part of the compensation for the system, may assume the payment of any outstanding bond.

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Md. Code Ann., Pub. Util. (as displayed at mgaleg.maryland.gov, October 16, 2026)