Nevada's Interim Finance Committee on Tuesday approved a deal allowing Carson City to lease the well officials mistakenly drilled on state property.
The well, part of the city's municipal water system, was drilled just south of the fire station on Stewart Street on what city officials thought was their property.
State Lands Administrator Pam Wilcox said they were wrong -- the land is actually owned by the state.
"The water right belongs to the city," she said. "The cost of production is the city's."
But she said the land isn't. After an appraisal, city officials agreed that $1,250 a year would be a fair price.
