In 2001, the City of Rincon, Georgia was notified by the Environmental Protection Division of the Georgia Department of Natural Resources EPD that it was in violation of its groundwater withdrawal permit authorizing it to withdraw 0.087 million gallons of water per day from the Upper Floridan Aquifer. The City and the EPD entered into a consent order concerning this issue in 2002; this order stated that the EPD would continue to issue the City water withdrawal permits and allow it to take water over the limit if the City tapped into and began taking a certain percentage of its water from the county’s treated-surface-water pipeline. Subsequently, the City, apparently being unsatisfied with the quality of the treated surface water, unsuccessfully sought to set aside that order. City of Rincon v. Couch , 272 Ga. App. 411 612 SE2d 596 2005. In September 2003, the City applied to the EPD for a second groundwater withdrawal permit for the Floridan Aquifer, requesting that it be permitted to draw additional groundwater from a new well that it had drilled into the Lower Floridan Aquifer. The EPD denied this application finding the City had failed “to demonstrate a need or necessity for the new water withdrawal” in light of the consent order obligating the City to satisfy its water needs by connecting to the Effingham County water line. The City appealed and this Court ultimately upheld the EPD’s position in that case. City of Rincon v. Couch , 276 Ga. App. 567 623 SE2d 754 2005.
During this time, the City, through its elected officials or employees, issued several letters or gave written assurances to various developers that it could supply the necessary water taps and sewer connections to the residential developments they were proposing to build. Based on these representations, the developers went forward with their development plans, including obtaining the necessary financing. The City also issued building permits to these developers and continued to collect fees for taps and connections. At some point, the City did give written notice that it could not guarantee any water and sewer connections. The EPD notified the City on October 27, 2004 that it should cease allowing water system connections that were contrary to the consent order.
