As Central Arkansas Water continues acquiring land in the Lake Maumelle watershed to protect the region’s drinking water supply, Perry County officials say they’re trying to balance two priorities they see as equally important: safeguarding clean water and preserving the county’s economic future.
The utility has spent years purchasing environmentally sensitive land, often with federal grant funding, to limit future development around the watershed. Lake Maumelle supplies drinking water to much of the Little Rock metropolitan area, and Central Arkansas Water says roughly 40% flowing into the reservoir originates in Perry County.
Bryan Rupar, Central Arkansas Water’s watershed protection manager, said the acquisitions are guided by a watershed management plan adopted in 2007 that identified the most environmentally sensitive properties.
“By maintaining high forest cover in the watershed, we maintain water quality not just now, but for the future,” Rupar told Little Rock Public Radio. “That’s the goal for the long-term water supply.”
Rupar said owning the land provides protections that regulations alone cannot.
“Regulations limit certain types of development,” he said. “But owning the property is the only way we can guarantee that land stays in a healthy condition.”
Perry County Judge Larry Blackmon said no one disputes the importance of protecting the watershed.
“We do have to have good, clean drinking water,” Blackmon said. “But the problem it creates for Perry County is that land can never be developed.”
Central Arkansas Water has purchased much of that land from large timber companies, such as PotlatchDeltic. Once Central Arkansas Water acquires the property, it becomes exempt from local property taxes under state law. But Blackmon said the immediate loss in tax revenue is smaller than many people assume, because timberland generates relatively little property tax.
“The last piece of property that Central Arkansas Water purchased was only paying about $48 a year in taxes,” he said.
Instead, he says the larger concern is what those acres could have become.
“If Potlatch sold this land to a development instead of Central Arkansas Water, then you would see houses built and different things,” Blackmon said. “Then you would have quite a bit of revenue coming into the county.”
Perry County has not produced an estimate of how much future tax revenue could be lost if the land remains permanently undeveloped.
Rupar said Central Arkansas Water recognizes those concerns, but believes protecting the watershed also creates long-term value for Perry County.
“Our properties contribute to the local economy in various ways,” he said. “By maintaining high water quality, it’s cheaper for us to treat the water, which helps keep customers’ bills lower. We can also provide recreation opportunities through trails and partnerships, and we’ve seen small businesses become interested in Perry County because of those amenities.”
Republican state Rep. Mary Bentley, whose district includes Perry County, told Little Rock Public Radio her biggest frustration was not learning about the acquisitions until they were already underway. Bentley said local officials should have been part of those discussions before deals were finalized.
“I think it’s really important to make good-quality decisions that we get input from everybody,” she said.
Rupar acknowledged Central Arkansas Water could have done more to communicate with local leaders.
“I agree we could give them more notice of our interest in these properties,” he said. “We’ve had several meetings with county officials, and we’ve had some great conversations about what we can do differently in the future.” Still, he said the utility must also respect the rights of willing landowners.
“It’s hard to believe we would be against a private property owner being able to sell to someone they want to sell to willingly,” Rupar said.
Both Blackmon and Bentley argue that protecting drinking water and encouraging responsible economic development are not mutually exclusive. Bentley pointed to other Arkansas lakes where residential development exists alongside public water supplies, saying she believes Perry County could have pursued carefully planned development while still protecting water quality.
“We can do both,” Bentley said. “I don’t think it’s either-or.”
That tension shows a broader divide between Perry County and the communities that rely on its natural resources. Residents across Central Arkansas benefit from protected drinking water, while Perry County bears many of the land-use restrictions that come with preserving the watershed.
Blackmon said protecting the water supply ultimately benefits everyone, including Perry County residents.
“If Perry County is not protecting that water, almost half of the water supply would be contaminated before it gets into the lake,” he said.
Still, both officials believe counties that host regional water resources deserve additional support.
“In a perfect world,” Blackmon said, “I’d love to see some kind of royalty off that water that they would pay to the county to help financially.”
Bentley said the legislature should also consider ways to help counties whose tax base is limited by protected public lands.
“Water is essential to life,” Bentley said. “If we’re not going to be able to develop our land, we need to be compensated in a different manner.”
Rupar said Central Arkansas Water agrees the issue deserves continued discussion, even if it doesn’t yet have a solution.
“We can’t change the boundaries of our watershed or where the water flows,” he said. “But we’re willing to work with Perry County officials to see what alternative revenue streams we can help them develop and how we can help them apply for competitive grants. I don’t have any answers right now, but we’re having those conversations.”
That idea has surfaced in conversations with state lawmakers. Blackmon said he recently met with Central Arkansas Water officials and state Sen. Mark Johnson, R-Little Rock, to discuss whether the state could help offset the financial impacts on counties that supply regional water resources.
While no proposal has gained traction, Blackmon said Perry County’s long-term financial challenges extend beyond Central Arkansas Water’s land purchases.
“Ten or 15 years from now, Perry County is going to struggle to have its revenue increase enough to keep up with inflation,” he said. “If something doesn’t happen to change the revenue flow into the county, it’s going to be a problem regardless.”
Rupar said conversations with Perry County have become more productive in recent months and that Central Arkansas Water hopes to continue working with local officials.
“We’ve had some great conversations about what happens when Central Arkansas Water owns property and what we can address differently in the future,” he said.
He said the utility’s goal remains preventing pollution before it reaches the reservoir.
“The most effective way to protect water quality is prevention,” Rupar said. “The goal of our watershed protection plan is to maintain healthy water while balancing water protection with economic development.”
Central Arkansas Water also says many of its properties remain open for public uses, including partnerships with the Arkansas Game and Fish Commission and recreational trails. Agency officials have acknowledged Perry County leaders’ concerns and said they hope to find “win-win” solutions as conversations continue.
For Blackmon, the issue is not whether to protect the watershed, but how to fairly share the responsibility of doing so.
“I would invite people from Pulaski County to come to Perry County,” he said. “Let me show them the economic struggles that we have here. We all need clean water. The question is how we protect it while making sure counties like Perry aren’t left behind.”
