County of Del Norte v. City of Crescent City

Appellant City of Crescent City (City) owns and operates a water system for the benefit of its residents. Over the years it has also served private customers and several water districts in the unincorporated area of respondent County of Del Norte (County). During the decade of the 1990’s, the parties have experienced increasing political differences over the issues of whether, on what terms and to what extent the City should continue furnishing new water service connections outside city limits. In July 1997 the city council enacted a policy that it would “no longer allow new utility connections outside its incorporated territory . . . .” (Bold print omitted.) The County responded with an action in mandate and for injunctive relief seeldng rescission of the policy and an order directing the City to provide new service connections to the unincorporated area. Upon concluding that the policy was arbitrary, the trial court granted the requested relief. We reverse the judgment.

I. Facts

In the 1950’s, the City purchased a private water system that had its source in muddy wells near the local cemetery. Apparently this system was unregulated and operating without a license.…