Carroll Water Supply Corporation is a non-profit rural water supply corporation. Articles of Incorporation were effective January 15, 1965. Carroll Water Supply Corporation (CWSC) operates under Certificate of Convenience and Necessity (CCN) number 10765, granted by the State of Texas on November 1, 1979. The CCN describes the geographic territory that CWSC is authorized to serve which include portions of western Smith County and eastern Van Zandt County. Operations of the system are regulated by the Texas Commission for Environmental Quality (TCEQ) through the Texas Water Code and other State laws, TCEQ Regulations displayed in Texas Administrative Code, Chapter 30, CWSC Tariff and By-Laws. TCEQ conducts routine inspections of facilities and the administrative operations of CWSC and monitors actions throughout the year. Because CWSC has a current loan balance with the United States Department of Agriculture – Rural Development (USDA), monitoring of financial performance and facility condition also occurs. USDA also maintains approval authority over CWSC by-laws and approval authority over any changes to assets owned and operated by CWSC. CWSC assets are the collateral pledged as security for the USDA loan.
CWSC governance is through a five-member Board of Directors, elected by members, that serve three-year terms. Elections for board member positions are staggered across the three years with at least one board position being up for election each year. Opportunities for nominations to the Board occur each December and member ballots sent out in January with election results announced at the annual meeting held each February. Board members serve as volunteers and receive no compensation of any kind for that service. CWSC members are encouraged to volunteer to serve as a Director on the Board.