Kingman Water Company, a Corporation v. United States

During the late World War a government housing unit was built in Mojave County, Arizona, by the Housing Authority, an agency authorized to operate housing projects under lease to the Federal Government. The project consisted of 31 houses containing altogether 120 units. The Government was responsible for securing water for the project. Appellant is a public utility supplying water for the area in which the project was located.

Under Arizona law a schedule of the rates of a public utility is required to be filed with the Arizona Corporation Commission. Appellant’s rates on file with the Commission contained a provision for a $2.50 minimum rate per 3,000 gallons for all connections metered. T here were in fact installed but four meters which metered all the water coming into the project. The water was then distributed to the houses in the project, there being no individual meters in those houses.

Something like a year before the completion of the project the Government sent a proposed contract to the appellant. The contract contained numerous provisions, one of which would have allowed the Government to resell the water to the dwellers. The proposed contract was rejected by…