A federal judge dismissed a lawsuit by Falls Church against Fairfax County on Wednesday, ruling the city could not claim exclusive rights to provide water to areas within Fairfax County.
The ruling opens parts of the county adjacent to Falls Church to water competition — they had previously been served exclusively by Falls Church — and ends a months-long dispute between the two jurisdictions.
Fairfax County officials hailed the decision as a victory for fair competition.
“I think it means that fair competition is going to be allowed for a large swath of Fairfax County where heretofore it hasn’t,” Fairfax County Board of Supervisors Chairman Gerald Connolly said. “Falls Church water has twice the rate of Fairfax water. And I think it’s time Fairfax customers are entitled to a choice, and this ruling guarantees that can happen.”
Falls Church contended it was granted exclusive rights through two measures: an agreement between the city and county that established the boundaries of water service and that, despite its expiration in 1989, was until recently traditionally honored; and a series of federal laws.
The court,however, dismissed the case, noting the expiration of the agreement and no mention of entitlements to exclusive service territory in any of the laws the city referenced.
Water service represents a key source of revenue for Falls Church, generating about $2.4 million this fiscal year out of a $67 million budget.
The city complained that when in January the Fairfax water authority contacted Trammell Crow, a developer of commercial and residential project near the Dunn Loring-Merrifield Metro station, it deliberately tried to interfere with the city’s customer base. The court, however, ruled that no protections for the city applied.
Falls Church Mayor Robin Gardner could not be reached for comment Wednesday.
