N.C. Gen. Stat. » Chapter 160A
NC General Statutes

N.C. Gen. Stat. § 160A-312 (2026)

Authority to operate public enterprises

✓ current as of July 2026
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(a) A city shall have authority to acquire, construct, establish, enlarge, improve, maintain, own, operate, and contract for the operation of any or all of the public enterprises as defined in this Article to furnish services to the city and its citizens. Subject to Part 2 of this Article, a city may acquire, construct, establish, enlarge, improve, maintain, own, and operate any public enterprise outside its corporate limits, within reasonable limitations, but in no case shall a city be held liable for damages to those outside the corporate limits for failure to furnish any public enterprise service.

(b) A city shall have full authority to protect and regulate any public enterprise system belonging to or operated by it by adequate and reasonable rules. The rules shall be adopted by ordinance, shall apply to the public enterprise system both within and outside the corporate limits of the city, and may be enforced with the remedies available under any provision of law.

(c) A city may operate that part of a gas system involving the purchase and/or lease of natural gas fields, natural gas reserves and natural gas supplies and the surveying, drilling or any other activities related to the exploration for natural gas, in a partnership or joint venture arrangement with natural gas utilities and private enterprise. (1971, c. 698, s. 1; 1973, c. 426, s. 51; 1975, c. 821, s. 5; 1979, 2nd Sess., c. 1247, s. 29; 1991 (Reg. Sess., 1992), c. 836, s. 1.)

 

Notes of Decisions
Cited in 43 cases (1 in the last 5 years), 1974–2022 · leading case: City of Asheville v. State, 665 S.E.2d 103 (N.C. Ct. App. 2008).
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City of Asheville v. State, 665 S.E.2d 103 (N.C. Ct. App. 2008). · cites it 40× “Finally, Sullivan III, captioned “An Act Regarding the Operation of Public Enterprises by the City of Asheville” and enacted on the same day as Sullivan II, modified N.C.G.S. §§ 160A-312, 160A-31(a), and 160A-58.”
Davidson Cnty. v. City of High Point, 354 S.E.2d 280 (N.C. Ct. App. 1987). · cites it 29× “High Point contends that G.S. § 160A-312 gives it the absolute authority, without limitation or restriction, to upgrade its sewage treatment facility and use that facility to provide sewer service to residents of newly annexed areas.”
Town of Midland v. Morris, 704 S.E.2d 329 (N.C. Ct. App. 2011). · cites it 20× “As applicable in this case, N.C. Gen. Stat. § 160A-312 authorizes a city to establish a public enterprise — including a gas transmission and distribution system — to “furnish services to the city and its citizens.”
Lumbee River Elec. Membership Corp. v. City of Fayetteville, 309 S.E.2d 209 (N.C. 1983). · cites it 14× “The sole issue on this appeal is whether Fayetteville’s extension of electric service to the Montibello Subdivision was “within reasonable limitations” as that term is utilized in G.S. § 160A-312. We conclude that it was.”
Duke Power Co. v. City of High Point, 317 S.E.2d 701 (N.C. Ct. App. 1984). · cites it 30× “In Section A, we discuss the pertinent statutory provisions contained in Chapter 160A of the General Statutes and specifically the two bases of authority under G.S. 160A-312 authorizing the extension of service outside of a municipality.”
Smith Chapel Baptist Church v. City of Durham, 517 S.E.2d 874 (N.C. 1999). · cites it 9× “N.C.G.S. § 160A-312(a) allows cities and towns to “acquire, construct, establish, enlarge, improve, maintain, own, operate, and contract for the operation of any or all of the public enterprises as defined in this Article to furnish services to the city and its citizens.”
City of Asheville v. State, 794 S.E.2d 759 (N.C. 2016). · cites it 6× “See N.C.G.S. § 160A-312(a) (2015) (authorizing a city to operate a water supply and distribution system inside and “outside its corporate limits, within reasonable limitations”).”
Town of Beech Mountain v. Genesis Wildlife Sanctuary, Inc., 786 S.E.2d 335 (N.C. Ct. App. 2016). · cites it 4× “2008) (“the provision and regulation of a healthful public water supply is at the core of [governmental] police power”); N.C. Gen. Stat. § 160A-312(b) (“A city shall have full authority to protect and regulate [water systems]”).”
Madison Cablevision, Inc. v. City of Morganton, 386 S.E.2d 200 (N.C. 1989). · cites it 6× “” N.C.G.S. § 160A-312 then provides, in pertinent part, as follows: A city shall have authority to acquire, construct, establish, enlarge, improve, maintain, own, operate, and contract for the operation of any or all of the public enterprises as defined in this Article to…”
Quality Built Homes Inc. v. Town of Carthage, 776 S.E.2d 897 (N.C. Ct. App. 2015). · cites it 8× “§ 160A-312, "[a] city shall have authority to acquire, construct, establish, enlarge, improve, maintain, own, operate, and contract for the operation of any or all of the public enterprises as defined in this Article to furnish services to the city and its citizens.”
United States Cold Storage, Inc. v. Town of Warsaw, 784 S.E.2d 575 (N.C. Ct. App. 2016). · cites it 13× “See N.C. Gen. Stat. § 160A-312 (2013). Generally, towns have no duty to furnish water and sewer services to persons outside the town limits.”
Quality Built Homes Inc. v. Town of Carthage, 789 S.E.2d 454 (N.C. 2016). “§ 160A-314(a), that “[a] city shall have authority to acquire, construct, establish, enlarge, improve, maintain, own, operate, and contract for the operation of any or all of the public enterprises .”
Show all 43 citing cases →
— N.C. Gen. Stat. § 160A-312(a) — 14 cases
City of Asheville v. State, 665 S.E.2d 103 (N.C. Ct. App. 2008). “Finally, Sullivan III, captioned “An Act Regarding the Operation of Public Enterprises by the City of Asheville” and enacted on the same day as Sullivan II, modified N.C.G.S. §§ 160A-312, 160A-31(a), and 160A-58.”
Smith Chapel Baptist Church v. City of Durham, 517 S.E.2d 874 (N.C. 1999). “N.C.G.S. § 160A-312(a) allows cities and towns to “acquire, construct, establish, enlarge, improve, maintain, own, operate, and contract for the operation of any or all of the public enterprises as defined in this Article to furnish services to the city and its citizens.”
City of Asheville v. State, 794 S.E.2d 759 (N.C. 2016). “See N.C.G.S. § 160A-312(a) (2015) (authorizing a city to operate a water supply and distribution system inside and “outside its corporate limits, within reasonable limitations”).”
Town of Midland v. Morris, 704 S.E.2d 329 (N.C. Ct. App. 2011). “As applicable in this case, N.C. Gen. Stat. § 160A-312 authorizes a city to establish a public enterprise — including a gas transmission and distribution system — to “furnish services to the city and its citizens.”
Quality Built Homes Inc. v. Town of Carthage, 789 S.E.2d 454 (N.C. 2016). “§ 160A-314(a), that “[a] city shall have authority to acquire, construct, establish, enlarge, improve, maintain, own, operate, and contract for the operation of any or all of the public enterprises .”
— N.C. Gen. Stat. § 160A-312(b) — 2 cases
Town of Beech Mountain v. Genesis Wildlife Sanctuary, Inc., 786 S.E.2d 335 (N.C. Ct. App. 2016). “2008) (“the provision and regulation of a healthful public water supply is at the core of [governmental] police power”); N.C. Gen. Stat. § 160A-312(b) (“A city shall have full authority to protect and regulate [water systems]”).”
Town of Beech Mountain v. Genesis Wildlife Sanctuary (N.C. Ct. App. 2016).
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