(a) Every incorporated city and town in this state is authorized and empowered to own, acquire, construct, extend, equip, operate and maintain within or without the corporate limits of such city or town a waterworks system or a sewerage system, to provide water or sewerage service and to charge for such service.
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Terms Used In Tennessee Code 7-35-401

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Municipal corporation: means any incorporated city or town in this state and any utility district created pursuant to chapter 82 of this title. See Tennessee Code 7-35-401
  • Project for a private purpose: includes , but is not limited to:
    (a) Any commercial project, commercial subdivision, private residence or residential subdivision that is owned by a nonpublic entity. See Tennessee Code 7-35-401
  • Property: includes both personal and real property. See Tennessee Code 1-3-105
  • Sewerage system: means all or any part of the following:
    (A) The collecting system. See Tennessee Code 7-35-401
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • Waterworks system: means all or any part of the following:
    (A) Source of supply. See Tennessee Code 7-35-401
  • Works: means the waterworks or sewerage system. See Tennessee Code 7-35-401
(b) As used in this part, unless the context otherwise requires:

(1) “Sewerage system” means all or any part of the following:

(A) The collecting system;
(B) Intercepting and outflow sewers;
(C) Pumping stations;
(D) Treatment, purification and disposal plants; and
(E) The installation of green infrastructure practices within areas containing collecting systems designed to convey both sanitary sewage and storm water. Green infrastructure practices include, but are not limited to: trees, tree boxes, vegetated roofs, infiltration strips, rain gardens, cisterns, dry wells, permeable pavement, soil amendments, pocket wetlands, and vegetated swales. Green infrastructure practices may be implemented on both public and private property at the discretion of the incorporated city or town;
(2) “Waterworks system” means all or any part of the following:

(A) Source of supply;
(B) Pumping facilities;
(C) Purification works;
(D) Storage facilities;
(E) Distribution system; and
(F) All necessary parts and appurtenances for proper operation; and
(3) “Works” means the waterworks or sewerage system.
(c)

(1) The power to own, acquire, construct, extend, equip, operate and maintain water or sewerage service shall not include the power to bid on or construct any project for a private purpose. As used in this subsection (c):

(A) “Municipal corporation” means any incorporated city or town in this state and any utility district created pursuant to chapter 82 of this title;
(B)

(i) “Project for a private purpose” includes, but is not limited to:

(a) Any commercial project, commercial subdivision, private residence or residential subdivision that is owned by a nonpublic entity;
(b) The construction of individual water or sewerage lines beyond a meter that measures service or consumption, or onto private property, unless such water or sewerage line is owned by, or a utility easement has been obtained by, the municipal corporation; and
(c) Any other projects that are not part of the normal operation of a municipal corporation in providing water or sewerage services and which projects are otherwise constructed by private contractors who are subject to the sales tax, the business tax and other tax laws and licensure laws of this state;
(ii) “Project for a private purpose” does not include the renewal or replacement of any existing water or sewerage lines that are owned by the municipal corporation; and
(iii) “Project for a private purpose” does not include the renewal or replacement of individual water or sewage lines behind a meter or onto private property when such rehabilitative maintenance or construction is deemed necessary by the municipal corporation because excessive infiltration and inflow from groundwater or rainwater is resulting in sanitary sewer overflows or other serious health or system capacity issues. Municipal corporations are authorized, but not required, to maintain or construct individual lines for this purpose if the property owner consents and agrees to hold the municipal corporation harmless for the work.
(2) This subsection (c) shall not apply in any county having a population of not less than two hundred eighty-seven thousand seven hundred (287,700) nor more than two hundred eighty-seven thousand eight hundred (287,800), according to the 1980 federal census or any subsequent federal census.
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