New Mexico Statutes

N.M. Stat. § 3-29-1 (2026)

Sanitary Projects Act; short title.

✓ current as of May 2026

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Chapter 3, Article 29 NMSA 1978 may be cited as the "Sanitary Projects Act".

History: 1953 Comp., § 14-28-1, enacted by Laws 1965, ch. 300; 2001, ch. 200, § 1.

                                     ANNOTATIONS

The 2001 amendment, effective July 1, 2001, updated the internal reference.

Immunity from liability for antitrust damages. — An association that is organized
under the Sanitary Projects Act, 3-29-1 NMSA 1978, is a special function governmental
unit, established by state law, and is immune from damages for liability under the New
Mexico Antitrust Act, 57-1-1 NMSA 1978. Moongate Water Co., Inc. v. Dona Ana Mut.
Domestic Water Consumers Ass'n, 2008-NMCA-143, 145 N.M. 140, 194 P.3d 755.

Sanitary Projects Act association was not transformed into public utility by selling
water to a limited number of nonmember water haulers and was not, therefore, subject
to the public service commission's regulatory jurisdiction. El Vadito De Los Cerrillos
Water Ass'n v. New Mexico Pub. Serv. Comm'n, 1993-NMSC-041, 115 N.M. 784, 858
P.2d 1263.

Water association is a public body. — A mutual domestic water association is not a
state agency, but it qualifies as a public body/political subdivision and thus has statutory
responsibilities to abide by the Open Meetings Act, the Inspection of Public Records
Act, the Procurement Code and the Per Diem and Mileage Act. 2006 Op. Att'y Gen. No.
06-02.

Mutual domestic water consumers associations are municipal corporations and
are therefore exempt from property taxes. — Article VIII, § 3 of the New Mexico
Constitution exempts from property taxes the property of municipal corporations, and
under current law mutual domestic water consumers associations (MDWCA), organized
pursuant to the Sanitary Projects Act, NMSA 1978, §§ 3-29-1 to 3-29-21, are municipal
corporations, as they are local political entities created pursuant to statute and
authorized to manage community water systems, and therefore the property of
MDWCAs is constitutionally exempt from property taxation. 2024 Op. Att'y Gen. No. 24-
06.

Nonprofit corporation organized to provide community water system, under this
section, is not another municipal corporation under N.M. Const., art. VIII, § 1, and is
subject to ad valorem taxation under N.M. Const., art. VIII, § 3. 1968 Op. Att'y Gen. No.
68-38.

Audit of associations. — Associations created pursuant to this article are subject to
audit under the Audit Act (12-6-1 NMSA 1978 et seq.). 1990 Op. Att'y Gen. No. 90-30.

Mutual domestic water consumers association project can be transferred or given
to a newly created village. 1962 Op. Att'y Gen. No. 62-99.

Notes of Decisions

Cited in 11 cases (2 in the last 5 years), 1993–2025 · leading case: Morningstar Water Users Ass'n v. New Mexico Pub. Util. Comm'n, 904 P.2d 28 (N.M. 1995).

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Morningstar Water Users Ass'n v. New Mexico Pub. Util. Comm'n, 904 P.2d 28 (N.M. 1995). · cites it 5× “As discussed in greater detail below, mutual domestics were organized under the precursors to the Sanitary Projects Act, NMSA 1978, §§ 3-29-1 to -19 (Repl. Pamp.1995) [hereinafter SPA].”

El Vadito De Los Cerrillos Water Ass'n v. New Mexico Pub. Serv. Comm'n, 858 P.2d 1263 (N.M. 1993). · cites it 4× “s authority by requiring El Vadito to offer memberships to all former water hauler customers of CWIC as a condition to approving CWIC's application for abandonment and transfer; (2) whether El Vadito was transformed into a public utility when it sold water to water haulers who…”

Doña Ana Mut. Dom. Water Consumers Ass'n v. New Mexico Pub. Reg. Comm'n, 139 P.3d 166 (N.M. 2006). “Background {2} Doña Ana was created in 1974 to serve the area around the Village of Doña Ana, west of 1-25, pursuant to the Sanitary Projects Act, NMSA 1978, Sections 3-29-1 through 3-29-20 (2004). As of March 2005, Doña Ana served approximately 3,133 connections.”

Stansell v. New Mexico Lottery, 211 P.3d 214 (N.M. Ct. App. 2009). · cites it 2× “This intent does not, however, establish the Lottery as an actual corporation.”

Moongate Water Co. v. Dona Ana Mut. Dom. Water Consumers Ass'n, 420 F.3d 1082 (10th Cir. 2005). “Doña Ana Mutual Domestic Water Association, a nonprofit association formed for the purpose of providing water services, is organized under the New Mexico Sanitary Projects Act, N.M. Stat. Ann. § 3-29-1 et seq. Moongate brought this action in the United States District Court for…”

Doña Ana Mut. Dom. Water Consumers Ass'n v. City of Las Cruces, 516 F.3d 900 (10th Cir. 2008). “Doña Ana is a nonprofit water service provider formed under the New Mexico Sanitary Projects Act, N.M. Stat. Ann. § 3-29-1 et seq. As a mutual domestic water consumers association, Doña Ana is not subject to regulation by the PRC, except with regard to disputes between Doña Ana…”

Moongate Water Co. v. DoÑa Ana Mut. Dom. Water Consumers Ass'n, 194 P.3d 755 (N.M. Ct. App. 2008). · cites it 2× “{1} In this case, we consider whether an association that is organized under the Sanitary Projects Act (SPA), NMSA 1978, §§ 3-29-1 to -21 (1965, as amended through 2006), is immune from suit for damages, pursuant to the New Mexico Antitrust Act (NMAA), NMSA 1978, §§ 57-1-1 to…”

San Juan Water Comm'n v. Taxpayers & Water Users, 860 P.2d 748 (N.M. 1993). “The San Juan Rural Water Users Association is comprised of ten community water users associations, and each is a nonprofit corporation organized under the Sanitary Projects Act, NMSA1978, Sections 3-29-1 to - 19 (Repl.Pamp.1991).”

GJ Ranches LLC v. Lumberton Mut. Dom. Water Consumers Ass'n (D.N.M. 2025). · cites it 4× “1 at ¶4 (“Defendant LMDWCA is a New Mexico domestic sanitary project association formed under the Sanitary Projects Act, NMSA 1978, §§ 3-29-1 to -22.”); Doc. 28 at 1 (“Defendant LMDWCA is a mutual domestic association organized under the Sanitary Projects Act.”

GJ Ranches LLC v. Lumberton Mut. Dom. Water Consumers Ass'n (D.N.M. 2025). · cites it 2× “1 at ¶4 (“Defendant LMDWCA is a New Mexico domestic sanitary project association formed under the Sanitary Projects Act, NMSA 1978, §§ 3-29-1 to -22.”); Doc. 28 at 1 (“Defendant LMDWCA is a mutual domestic association organized under the Sanitary Projects Act.”

Elkins v. Waterfall Cmty. (N.M. Ct. App. 2019). “Defendant, a political subdivision of the State of New Mexico and a public entity, has operated the system under the provisions of the Sanitary Projects Act, NMSA 1978, Sections 3-29-1 to -21 (1965, as amended through 2017).”

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