2023 Nevada Revised Statutes › Chapter 445A - Water Controls › NRS 445A.895 - Systems constructed after June 30, 1991: Conditions for issuance of permit.

A permit to operate a water system may not be issued pursuant to NRS 445A.885 unless all of the following conditions are met:
1. Neither water provided by a public utility nor water provided by a municipality or other public entity is available to the persons to be served by the water system.
2. The applicant fully complies with all of the conditions of NRS 445A.885 to 445A.915, inclusive.
3. The applicant submits to the Division or the district board of health designated by the Commission documentation issued by the State Engineer which sets forth that the applicant holds water rights that are sufficient to operate the water system.
4. The local governing body agrees:
(a) That, except as otherwise provided in paragraph (b), in the event of a default by the builder, developer or owner of the water system, the sole and exclusive obligation of the local governing body shall be to use the surety furnished to the local governing body pursuant to subsection 5 to contract with and pay the operator of the water system for the continued operation and maintenance of the water system.
(b) To assume the duty of assessing the lands served as provided in subsection 6 in the event of default by the builder, developer or owner of the water system.
5. The applicant furnishes the local governing body sufficient surety, in the form of a bond, certificate of deposit, investment certificate, properly established and funded reserve account or any other form acceptable to the governing body, to ensure the continued maintenance and operation of the water system:
(a) For 5 years following the date the system is placed in operation; or
(b) Until 75 percent of the lots or parcels served by the system are sold,
whichever is later.
6. The owners of the lands to be served by the water system:
(a) Furnish the local governing body sufficient surety, in the form of a bond, certificate of deposit, investment certificate, properly established and funded reserve account or any other form acceptable to the governing body, to ensure the continued maintenance and operation of the water system and continued technical, financial and managerial capability of the water system; and
(b) Record a declaration of covenants, conditions and restrictions which is an equitable servitude running with the land and which must provide:
(1) That each lot or parcel will be assessed by the local governing body for its proportionate share of the cost of replenishing or augmenting the surety required pursuant to paragraph (a) as necessary for the continued operation and maintenance of the water system if there is a default by the builder, developer or owner of the water system:
(2) That the owners of the lands will annually provide the local governing body with a financial audit of the water system, including, without limitation, any reserve account, if established, to ensure the adequacy of the financial management of the water system; and
(3) An acknowledgment of and agreement with the obligations of the local governing body pursuant to subsection 4 and subsection 3 of NRS 445A.905.
7. If the water system uses or stores ozone, the portion of the system where ozone is used or stored must be constructed not less than 100 feet from any existing residence, unless the owner and occupant of each residence located closer than 100 feet consent to the construction of the system at a closer distance.
8. The owners of the lands to be served by the water system record a declaration of covenants, conditions and restrictions, which is an equitable servitude running with the land, and provides that if the Division determines that:
(a) The water system is not satisfactorily serving the needs of its users; and
(b) Water provided by a public utility or a municipality or other public entity is reasonably available,
the local governing body shall, in a county whose population is 700,000 or more, and may, in all other counties, pursuant to NRS 244.3655 or 268.4102, require all users of the water system to connect into the available water system provided by a public utility or a municipality or other public entity, and each lot or parcel will be assessed by the local governing body for its proportionate share of the costs associated with connecting into that water system. If the water system is being connected into a public utility, the Public Utilities Commission of Nevada shall determine the amount of the assessments for the purposes of establishing a lien pursuant to NRS 445A.900.
9. Provision has been made for disposition of the water system and the land on which it is situated after the local governing body requires all users to connect into an available water system provided by a public utility or a municipality or other public entity.
(Added to NRS by 1991, 401; A 1995, 2663; 1997, 1996; 2001, 549; 2005, 554; 2023, 1265)