New Orleans Tax Payers' Protective Assn. v. Sewerage and Water Bd. of New Orleans

Background

A group of New Orleans property taxpayers asked courts to declare a Louisiana statute and the local water board’s ordinances unconstitutional. They argued that when voters approved a special two‑mill tax for forty‑three years to build water and sewer systems, the city promised free water for drinking and domestic uses as part of a “free sewerage system, with free water therefor.” The water board’s rules, however, already allow 1,000 gallons per quarter free for flushing closets while charging for other household uses. The state supreme court upheld those charges, and the taxpayers sought further review here.

Reasoning

The main question was whether the local vote and related laws created a binding promise that all household water must be free. The Court agreed with the state high court’s reading that the phrase “therefor” refers to water supplied for the sewer system’s operation, such as flushing closets, not all drinking or bathing water merely because it later goes down the drain. The Court noted the original 1899 statute excluded only water used “for sewerage purposes only” from charges and found the 1908 act did not expand that exemption. Given the state courts’ finding and the limited scope of the statute, this Court found no federal reason to overturn the state judgment and dismissed the writ.

Real world impact

The practical effect is that New Orleans may require connections to the public water mains and charge for most drinking and domestic water while keeping a generous free allowance for sewer flushing. Residents should expect bills for ordinary home water use; only water provided specifically to operate the sewer system is free. This ruling resolves a local state‑law contract dispute and does not create a broad national rule.