Case Explained: DUPONT WATER COMPANY, INC v. CITY OF MADISON, INDIANA and JEFFERSON COUNTY, INDIANA

Court: United States Court of Appeals for the Seventh Circuit Filed: 2026-08-05 The Seventh Circuit affirmed the district court’s grant of summary judgment in favor of the City of Madison and Jefferson County, holding that Dupont Water Company failed to establish a violation of 7 U.S.C. § 1926(b). The court applied the “physical capability” test established in *Washington County Water Co. v. City of Sparta*, which requires a rural water association to demonstrate it has “pipes in the ground” and the ability to provide service within a reasonable time after a request for service occurs. The court found that Dupont did not meet this standard because, despite extensive communications with Jefferson County regarding the new jail’s water needs starting in 2020, Dupont failed to provide an infrastructure plan, a rate quote, or a contract for years. The record showed Dupont sat on its hands while the county built the facility and secured water from Madison, only initiating engineering studies after litigation began. Consequently, no reasonable jury could find that Dupont had “provided or made available” service within a reasonable time. While the court noted serious questions regarding the tension between its precedent in *Jennings Water*—which broadly prohibits municipal encroachment—and the statutory text, it declined to overrule that precedent in this instance, ruling instead that Dupont’s claims failed under existing law due to its own inaction. The practical consequence is that Madison and Jefferson County are permitted to continue providing water service to the Jefferson County Jail without liability for violating Dupont’s federally protected monopoly rights, as Dupont did not satisfy the statutory requirements to trigger those protections. Do It For The Case Law is a news reporting service. Nothing in this episode constitutes legal advice.