In a letter to the owners of the Kerr Lake Regional Water System dated May 21, Franklin County Manager Ryan Preble posed a couple of possible solutions to his county’s need for more water.
The six-page letter recounted efforts undertaken by Franklin County over the past almost 20 years to find a way to bring more water to an area experiencing explosive growth, seemingly with no end in sight.
Preble sent the letter to City Manager Paylor Spruill, Warren County Manager Crystal Smith and Oxford City Manager Brent Taylor – Henderson is a 60 percent owner of the KLRWS and Warren County and the City of Oxford each have a 20 percent share in ownership.
In March, Franklin County asked the U.S. Army Corps of Engineers for its own allocation of water from Kerr Lake – 16.7 million gallons a day. That request will be considered but no answer is expected for more than a year.
The regional water system is undergoing an expansion that will increase capacity to 20 million gallons per day, but Preble’s letter states that it would be too costly and impractical for Franklin County to pay as a customer.
In his conclusion, Preble offers the three water system owners “options” and gives the three entities 30 days to accept the terms.
Here’s an excerpt from the letter:
“Franklin has been in discussions within the region about short-term and long-term water supply for at least 19 years (since 2007). Henderson supplies Franklin with an additional 450,000 GPD but that is all Henderson is willing to do given the size of its water distribution infrastructure. Franklin respects that. Short-term, Franklin cannot pay $35 million for 2.5 MGD when there are other potential sellers at a lower cost. Franklin is open to regional discussions, but KLRWS must either agree to sell at an agreed-upon fair market value of a 51% stake in KLRWS or sell a lower percentage interest but give Franklin the right to expand at its cost to develop additional capacity that belongs to Franklin (the Basic Terms). If either of these options are amenable, we would like to discuss terms to move this forward. Any business formation issues (create an authority or a joint venture) are irrelevant unless Franklin is going to solve its supply challenge with a regional solution.
Please indicate your willingness to accept the Basic Terms within thirty (30) days of the date of this letter, by June 21, 2026. If you would like to setup (sic) a meeting after accepting the Basic Terms, please let me know.”
Find the full text of the letter here https://www.franklincountync.gov/DocumentCenter/View/2089/Letter-from-County-Manager-Ryan-Preble-on-Regional-Water-Discussions—May-21-2026-PDF
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