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Highlights

The Department of the Interior's Water and Power Resources Service's five largest water customers in California are districts which were established under State laws to supply water to users within their service areas. GAO was asked to investigate the resale of Federal water supplied under contract to State and local districts to determine whether: (1) the Resources Service's policies and procedures address water resales; (2) the five districts are profiting from the resale of federally supplied water outside their service areas; and (3) provisions in new water service contracts require the periodic recalculation of water rates.

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