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The State of Connecticut has a comprehensive program for preventing the creation of new, potentially nonviable small systems. State statutes establish guidelines for ordering a municipality or private water company to take over a failing small water company. Repeated noncompliance with drinking water regulations may subject a system to acquisition. The takeover company must either extend its mains or establish a satellite system to serve the area, and it must make any necessary improvements to the failing system. Water rates are adjusted to compensate companies for expenses in acquiring and operating the new system. A case study of the Lebanon Water Company, which was acquired without cooperation of the owner, is given. A figure lists conclusions from the Connecticut Water Resources Task Force Report, which generated the small systems program. The state has three means to deal with small systems: a requirement of a certificate of public convenience and necessity for new or expanding systems, establishment of "exclusive service areas" for existing utilities; and takeover of existing water companies. Statues governing certification and takeovers are listed.