New NC Law Could Ease Holly Springs' Water Challenges, Here’s What You Should Know
Session Law 2025-77 eliminates requirement for special permits, known as Interbasin Transfer (IBT) certificates, for water transfers between certain subbasins within the same major river basin.
Holly Springs, NC, Jul. 14, 2025 — Holly Springs continues to experience rapid residential and commercial growth, and with that comes increasing demand for reliable water and wastewater infrastructure. Currently, the town purchases all of its drinking water from Harnett County. The water is drawn from the Cape Fear River, treated at the Harnett County Regional Water Treatment Plant, and pumped more than 20 miles to Holly Springs. While this long-standing arrangement has met the town’s needs in the past, growing demand has prompted the town to pursue more capacity, redundancy, and long-term system resilience.
To prepare for future growth, Holly Springs is investing over $300 million in major water and wastewater infrastructure projects. A cornerstone of this plan is a regional partnership with the City of Sanford and the Town of Fuquay-Varina. Together, the three municipalities are working to construct a 14-mile regional water conveyance line, expand Sanford’s water treatment facilities, and coordinate wastewater capacity upgrades. These shared investments are designed to diversify water sources, reduce dependence on a single supplier, and improve long-term reliability for all participating communities.
A new state law, House Bill 694—enacted in July 2025 as Session Law 2025-77—could help make that work easier. The law eliminates a long-standing requirement for special permits, known as Interbasin Transfer (IBT) certificates, for water transfers between certain subbasins within the same central river basin. This change applies directly to towns like Holly Springs, Sanford, and Fuquay-Varina, which are all located within the Cape Fear River Basin. Previously, a water transfer between subbasins—even within the same overall basin—could trigger additional regulatory reviews. By removing this requirement, the law streamlines regional infrastructure planning and may simplify regulatory processes tied to the new 14-mile water line project.
In addition to removing IBT requirements, the law also directs the Environmental Finance Center at the University of North Carolina at Chapel Hill to study the benefits, costs, and regulatory challenges of water and wastewater system regionalization. The study, due by April 1, 2026, is expected to include recommendations for legislative or regulatory changes that could help towns more effectively manage shared infrastructure. While no immediate funding or rule changes result from this provision, it signals the state’s growing interest in supporting regional partnerships like the one Holly Springs is pursuing.
The third component of the bill updates how nutrient offset credits are applied to wastewater discharge permits in the Neuse River Basin. While this section has limited impact on Holly Springs' current projects, it may affect future planning or regulatory compliance for towns with discharges into that basin.
Understanding where nearby towns get their water provides helpful context. Apex, for example, purchases all of its drinking water from the Town of Cary, which sources water from Jordan Lake. That water is treated at the jointly operated Cary/Apex Water Treatment Facility. Fuquay-Varina relies on a more diversified water portfolio, purchasing water from Harnett County, Johnston County, and the City of Raleigh. Like Holly Springs, Fuquay is also a partner in the regional expansion with Sanford and is working to increase its overall capacity.
Holly Springs’ current strategy reflects a broader regional trend across Wake, Harnett, and Lee counties: municipalities working together to share resources, increase resilience, and ensure long-term water availability for growing populations. While House Bill 694 doesn’t change the town’s path overnight, it does remove key regulatory barriers. It sets the stage for additional support as the state continues to evaluate how regional systems can better serve North Carolina communities.
House Bill 694 aligns with the infrastructure work Holly Springs is already undertaking. As the town continues its $300 million investment in water and wastewater systems, this legislation could help reduce administrative burdens and open the door to future state-level coordination or funding opportunities.