New Shoreham pushes state bill to let island water district deny service outside its boundaries

New Shoreham officials told the town council they are pursuing state legislation to let the local water district prohibit supplying municipal water to properties outside its established service area, arguing the district cannot absorb the capital and operating costs of large out-of-district hookups.

The measure, described at the meeting as the Water Resource Management Bill, was heard in the House Municipal Government Committee. "The way the statute currently reads sets forth a standard that New Shoreham could not meet," said a water-district representative, explaining that the town’s water system serves roughly 25% of the island and that extending mains to outlying areas could require capital work the district cannot finance.

Why it matters: Council members and state lawmakers said the bill aims to protect the financial viability of New Shoreham’s water district and to preserve the district’s statutory authority to set its own service boundaries. Officials warned that a court or statutory interpretation requiring service outside the district could force expensive mains — work that could “put our water district out of business,” as one participant put it.

What happened at the hearing: Town legislative staff said the House committee received the bill and that Representative Tina Spears provided testimony; the council’s presenter reported a mix of questions and limited opposition. To avoid complicating matters, representatives said they would remove Jamestown from the combined draft and allow Jamestown to pursue a separate, stand‑alone bill. That deletion, the town reported, removed most of the public opposition that had arisen because Jamestown’s situation includes pending litigation over residents seeking access to water.

Builder concerns and next steps: The Rhode Island Builders Association objected, arguing a 2022 law already provides a regulatory process for a water-supply authority to document and limit service outside a district. Town counsel said the island’s circumstances are different — New Shoreham is a small island with desalinated water produced from deep wells and limited ability to tie into outside systems — and the town intends to explain that uniqueness to the builders. "New Shoreham and Block Island is a very unique situation," said a legislative staff member, noting ongoing discussions with the builders’ association to pursue a possible carve‑out.

Officials asked the council to help document specific examples or fiscal analyses that would show why this enabling language is necessary for Block Island. Town counsel and state lawmakers said they will pursue amendments to limit the bill to New Shoreham and continue outreach to committee chairs, the builders’ association and affected stakeholders.

Local context: Speakers noted the district is expanding capacity — adding a storage tank, new wells and additional desalination lines — but said that incremental growth differs from a required, large main extension to outlying areas. "If we have to put a mainline out the West Side, our capacity to do that financially is virtually nonexistent," one council participant said.

Outlook: The town expects the Senate companion to be introduced in the next bill-assignment round and to move quickly once leadership positions settle. Town and legal staff will return with more documentation for committee members and for the builders’ association as negotiations continue.