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m Mr. Wm. Reinhardt Page 5 Sept. 3, 1948 File: 80 There is another point which I think should be brought to your attention. As you know, there has been a petition filed by certain petitioners, under Chapter 167 of the Nevada Laws of 1947, which authorize the creation of a water district in Las Vegas Valley, Clark County, Nevada, for the formation of such a district and I am enclosing for your information, a copy of the petition and the exhibit attached thereto. You will note that this proposed district covers a territory which Mayor Cragin now desires us to serve in addition to a large amount of other territory. Under this Nevada law, such a district may be formed under the procedure required therein to acquire by purchase, gift or condemnation, any and all lands within the boundaries of the district required for the maintenance, operation etc. of a water company for the purpose of serving the district with water. The act further provides that taxes may be levied for the purpose of paying any obligation of the district during its organizational state and that after the organization has been completed, under the procedure described in the act, the district may issue bonds for the financing of the district and the "creation of a sinking fund into which shall be paid from the revenues * * * sms fully sufficient to pay principal of and Interest on such bonds". The aet also specifically provides that the district may supplement the ground water resources of Las Vegas Valley by the importation and use of the waters of Lake Mead. I am advised that this petition which was submitted to the Board of County Commissioners, was approved and an election has been preliminarily set for October 5, 1948. The newspaper clipping with reference to the action of the Board of County Commissioners states that "the district would be so organized as to handle all of the water consumed in the area, taking over the holdings of the Las Vegas Land and Water Company and coordinating all services". It would seem, therefore, that the territory to which Mayor Cragin now desires our services may soon be adequately served upon the completion of the district formation proceedings and the functioning of the district itself in the manner proposed.