1940
By the late 1940s, growth had once again caught up with the water system. Searcy faced soaring fire insurance rates due to an insufficient water supply. The stockholders of the White County Water Company were financially unable to increase its capacity. In 1948, the city of Searcy attempted to buy the system, which also supplied water to Judsonia and Bald Knob. The proposed purchase was approved by the White County Chancery Court in a suit brought by E. O. Yancey. However, the matter was appealed to the Arkansas Supreme Court, where the decision was ultimately reversed.
The Supreme Court ruling deemed the intended actions of the City of Searcy illegal. To circumvent this obstacle, a new entity called the White County Pipeline Company was established. This allowed the City to purchase the White County Water Company and sell water to the newly formed pipeline company, which would serve the surrounding communities. Over time, these communities established their own water districts and began purchasing water directly from Searcy. As a result, the White County Pipeline Company ceased to exist.
1940
