Sale of Surplus Water and Use of Veterans Administration Sewage System by Municipality

B-180221: Feb 3, 1976

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An opinion was requested as to whether a Veterans Administration (VA) hospital could sell fresh water in excess of its needs to a town and offer the use of its sewer lines to discharge wastes from town facilities. The town's recreational park may be permitted to discharge sewage into the VA sewage system if VA determines administratively that the arrangement is in the interest of the Government and if the agreement constitutes only a revocable license for limited use. The VA hospital, which has a water filtration plant currently operating at half its rated capacity, may sell water to the park if the VA determines that the plant in the ordinary course of business produces excess water and that the sale is in the Government's interest.