Missoula Wins Right to Control Its Own Water in Victory Against Privatization

Missoula, Montana scored a major victory for community ownership of public resources when the state’s supreme court ruled 5-2 on Tuesday that the city’s use of its water system was “more necessary” than its use by a private company.

The city has been embroiled in a costly, years-long legal battle over control of its water supply. Missoula previously argued it has the right to use its powers of eminent domain to purchase Mountain Water Co. from then-owner the Carlyle Group—which has since sold the water company to Canada-based Liberty Utility—an argument which the Missoula County District Court agreed with last June.

Now, their argument has been vindicated, as the Montana Supreme Court on Tuesday found the lower court’s “detailed factual findings” supported the eminent domain decision.

“The city desired to own the water system that serves its residents because city officials believe a community’s water system is a public asset best owned and operated by the public,” the judges wrote in their decision (pdf).

During the lower court hearing last spring, witnesses testified that Missoula is the only city in Montana that didn’t control its own water supply. The utility has also been accused of charging customers unreasonably high rates.
“Long after people have forgotten any of our names, they won’t have to worry about who owns their water.”
—Mayor John Engen

Mayor John Engen said the city was ready to cut a check for $88.6 million to buy the utility out of private ownership.

The Missoulian reported Tuesday on some of the high court’s notes on the previous decision:

Justice Patricia Cotter wrote the majority opinion with agreement from Justices Mike McGrath, James Shea, Beth Baker, and Michael Wheat. Justices Jim Rice and Laurie McKinnon dissented.

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“We will begin working with attorneys first thing in the morning to finalize some work we’ve done around final order of condemnation, a motion to take possession, and we have to have a conversation with defendants about an orderly transition,” Engen said.

Missoula now joins a growing number of communities around the world that are taking back their water.

The mayor also thanked Missoula residents for their patience with the process and said, “long after people have forgotten any of our names, they won’t have to worry about who owns their water, and that has nothing to do with me. It has everything to do with this community and it has everything to do with what is right.”