Eligibility

1. Any distribution system or portion of a distribution system may enter into an agreement of intent or a water service agreement except for: a. A distribution system, or portion thereof, that received water from a rural water association, city, or other distribution system in the project area at any time before March 1, 1995, if the distribution system that supplied the water has entered into an agreement of intent or a water service agreement; or b. A distribution system, or portion thereof, that enters into an agreement to receive water from a rural water association, city, or other distribution system after March 1, 1995, if the distribution system that supplied or is supplying water has entered into an agreement of intent or a water service agreement. 2. Any receiving distribution system, or portion thereof, that was receiving water from a supplying distribution system may enter into an agreement of intent or a water service agreement if the supplying distribution system terminates the agreement to provide water to the receiving distribution system. 3. A receiving distribution system purchasing water from a supplying distribution system that has entered into an agreement of intent or a water service agreement is eligible to enter into an agreement of intent or a water service agreement for expansion into areas not served by project water from the supplying distribution system.