Martin County FWSD 1 was created in 1928 by Martin County Appraisal District following the presentation of a petition by landowners requesting water for domestic purposes. An election was held to determine whether a water supply district should be established to supply water to rural homes. A majority vote of qualified voters within the District's boundaries confirmed the formation.

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The District levies and collects a tax for operation and maintenance purposes. The funds collected go toward planning, constructing, acquiring, maintaining, repairing, and operating all necessary land, plants, works, facilities improvements, appliances, and equipment of the District. Funds are also used for paying costs of services, engineering, legal fees, and organization and administration fees.

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