Okla. Stat. » Title 11 — CITIES AND TOWNS
Oklahoma Statutes

Okla. Stat. tit. 11, § 37-119 (2026)

Contracts for water - Provision for modification of

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rates - Outside users subject to rationing program of municipality. A. All contracts for the sale or furnishing of water from a source obtained by or on behalf of a municipality by permit or prior right under state law or by general obligation bonds shall be made in the name of the municipality as provided for by statute or by charter. B. All such water sold and furnished to persons or public or private entities outside the corporate limits of the municipality shall be sold and furnished upon written contracts which shall provide for an annual review of the municipality's costs and contract modification of rates to permit rates to be increased or decreased to the purchasers as appropriate. Any modification shall be nondiscriminatorily allocated between the municipality's customers and the purchaser. Provided, however, that only those

costs that are attributable to maintaining the ability of the municipality to provide water service to the purchaser shall be included in purchaser's rates. The contracts shall provide that the persons or public or private entities outside the corporate limits of the municipality shall be subject to a rationing program consistent with any rationing program ordered by the municipality. Added by Laws 1977, c. 256, § 37-119, eff. July 1, 1978. Amended by Laws 1984, c. 126, § 67, eff. Nov. 1, 1984; Laws 1989, c. 74, § 1, operative July 1, 1989; Laws 1991, c. 313, § 2, eff. Sept. 1, 1991; Laws 1994, c. 339, § 1, eff. emerg. June 8, 1994.

Notes of Decisions
Cited in 1 case, 2011–2011 · leading case: Okfuskee Cnty. Rural Water Dist. No. 3 v. City of Okemah, 2011 OK CIV APP 65, 257 P.3d 1011.
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Okfuskee Cnty. Rural Water Dist. No. 3 v. City of Okemah, 2011 OK CIV APP 65, 257 P.3d 1011. “As affirmative defenses, City and Authority asserted first that the Oklahoma Constitution bars impairment of existing contracts, which they contended would result from applying 11 O.S.Supp.1994 § 37-119 and § 87-1192 to modify the existing contract; and second that § 37-119 and…”
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