State law aimed at curbing eminent domain abuse prevents a water authority from condemning land for the purpose of building a water and sewer facility that would be used by a private developer for a residential subdivision, the state Supreme Court has ruled.

On Sept. 24, the court unanimously ruled in Reading Area Water Authority v. Schuylkill River Greenway Association that because the easement was going to be used for private enterprise, it was specifically prohibited by Pennsylvania’s Property Rights Protection Act. The decision overturns a 2012 holding from the Commonwealth Court.

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