The last of a series of agreements required to build a pipeline between Minden and Carson City was approved Thursday.
Douglas County commissioners approved three interlocking agreements required for the pipeline.
They followed Indian Hills General Improvement District trustees who approved two agreements on Wednesday night. Carson City and Minden had already approved their agreements.
The agreements set the stage for construction of a $21 million project that ships water from Minden to other Douglas County water systems, Indian Hills and Carson City.
The project has been in the works since January 2009, when Indian Hills faced the expiration of its exemption from federal arsenic regulations.
The district's arsenic problem combined with Carson City's desire to make use of the water rights it owns in Carson Valley spurred talks.
On Wednesday, Indian Hills trustees approved an agreement with Douglas County to participate in the pipeline and an agreement with Minden to transfer the district's water rights.
Commission Chairman Mike Olson thanked the district trustees for their work.
"This is a great opportunity to show how Douglas County and Indian Hills can work together," he said. "Good job. I'm looking forward to working with you in the future."
Indian Hills is seeking grants and loans to help cover the $3.72 million cost of the project.
According to a letter from the U.S. Department of Agriculture, the district is eligible for a loan of about $900,000 and a grant of $834,722, provided it increases its user rate to $55.12 for 15,000 gallons of water.
"Most residents don't use that much water," USDA representative Kay Vernatter said.
District engineer Tim Russell said most district residents use 10,000 gallons of water or less.
"The new rate has to be in place before construction begins," he said.
The district also approved seeking $1.1 million from the Drinking Water State Revolving Loan Fund. The district is also seeking a $901,420 grant from the state capital improvements grant program.
According to documents distributed at Wednesday's meeting, the pipeline will cost $1.88 million to extend an 18-inch pipe from the main Minden-Carson pipeline to the district.
The district's share of the main 30-inch pipeline between Minden and Carson is $1.84 million.
