Municipal Utility District

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A Municipal Utility District (MUD) is an entity that provides one or all of these utilities: electricity, natural gas, sewer, waste collection, wholesale telecommunications, water, etc., to the residents of that district. The district is created by a geographical or real estate developers or metropolitan service area (multiple communities joining together for efficiency), etc., for the sole purpose of promoting the development of a designated area by providing a service, such as water and sewer, electricity or gas, to the members, or consumers, of that district. The MUD operates in the same manner as a public utility district and is created by a local private developer. Normally the districts are nonprofit entities. The general members usually elect a board to run the utility.