Act no. 32 on municipal water supply. Country/Territory Iceland Document type Legislation Date 2004 (2016) Source FAO, FAOLEX Subject Water Keyword Local government Water supply Potable water Water charges Waterworks Geographical area Arctic, Atlantic Ocean Islands, Europe, Europe and Central Asia, North Atlantic, North-East Atlantic, Northern Europe Abstract The present Act regulates the water supply in urban and rural areas. Article 1 establishes that municipalities shall operate a water supply for the purpose of satisfying the water needs of the public, households and businesses, including ports, as far as possible. In rural areas, the local government is authorized to operate a water supply, and invest in the construction of it, provided that research and cost estimates show that it is economical to install and operate the utility. According to Article 4, municipalities have the exclusive right to operate a water supply and the sale of water within the local boundaries of the municipality. However local government may entrust an institution or association, which is majority owned by the state and / or municipalities, with its obligations and rights under this Act. Full text Icelandic Website www.althingi.is