BARNES, J., for the Court.
¶ 1. In February 1966, the City of Hernando (the City) and Bright's Water Association (BWA), a private water company, entered into an agreement whereby, in exchange for the City agreeing not to object to BWA's serving water to the area located within one mile of the City's limits, BWA agreed, in the event the City ever annexed the area, to release the area from its service area and to give the City the option to purchase the pipes,...
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