Mich. Admin. Code R. 325.11702
Rule 1702. Regulatory jurisdiction over public water supplies in this state is for the declared purpose of protecting the public health and to assure that public water supplies and waterworks systems are properly planned, constructed, maintained, and operated. It is a well established principle in this state that type I public water supplies be operated and maintained in an effective manner at all times and that adequate provision be made for a continuing administrative authority to accomplish this objective. Department procedures which have been in effect have strongly encouraged public ownership of all type I public water supplies. Accordingly, it is the department's belief that all avenues must be thoroughly explored with local governmental units to achieve public ownership of those public water supplies. If it is determined by the department that a local unit of government will not accept responsibility for ownership and operation of a type I public water supply, specific procedures must be established prior to issuance of a permit for construction of waterworks systems associated therewith.
Mich. Admin. Code R. 325.11702