The Water District was formed on November 6, 1986 by the voters located within the service area of the Spokane Suburban Water Company, a wholly-owned subsidiary of the General Waterworks Corporation (GWC) of Philadelphia, PA. On August 1, 1988 the District acquired, from GWC, the water supply, distribution and miscellaneous facilities including an Operating Headquarters all located in various parts of Suburban Spokane County.
The period between November 1986 and August 1988 was spent negotiating a reasonable settlement with GWC. The initial offer by the District was $6,000,000: GWC counter offered $14,400,000. Because the differential remained substantial, the District began preparing for eminent domain action. This action required contracting with a consulting engineering firm, legal counsel and financial advisor-underwriter. By the Spring of 1988 the negotiations had reached an impasse with the District offering $7,400,000 countered by GWC’s $10,400,000. The District filed condemnation procedure against GWC. In May 1988 your commissioners met with officers of GWC and agreed on a purchase price of $7,600,000 for the system plus $300,000 for buildings, equipment and inventory. The outstanding purchase price has been paid in full.