Town Seeks Interbasin Transfer Certificate for Cape Fear River Basin Water Withdrawal

The Town of Fuquay-Varina has submitted a Notice of Intent to the North Carolina Department of Environmental Quality (NC DEQ) to obtain an Interbasin Transfer (IBT) Certificate. The proposal seeks authorization to withdraw up to 6.17 million gallons per day (MGD) from the Cape Fear River Basin to meet the water demands of its growing community over the next 30 years.

Under the proposed plan, the town would extract water from the Cape Fear River Basin and subsequently discharge treated wastewater into the Neuse River Basin. This process permanently removes water from the source basin, a move that has triggered significant opposition from downstream officials and environmental organizations.

Water Supply and Demand

Fuquay-Varina currently acquires wholesale water from Johnston County, Harnett County, and the City of Raleigh. However, the town has stated that these existing supplies are insufficient to meet future demands.

According to the Cape Fear Public Utility Authority (CFPUA), the requested 6.17 MGD of raw water is sufficient to provide treated drinking water to more than 27,000 homes. The CFPUA notes that if the certificate is approved, the same volume of water would be diverted away from the Cape Fear River and instead discharged as treated wastewater into the Neuse River.

Downstream Opposition and Economic Concerns

The proposal faces resistance from lawmakers and leaders in Southeastern North Carolina who argue that the transfer threatens the water security of downstream communities. On March 31, 2026, a bipartisan group of North Carolina senators sent a letter to the North Carolina Environmental Management Commission urging the rejection of the request.

Senator Michael Lee stated that nearly one million North Carolinians rely on the Cape Fear River for jobs, quality of life, and drinking water. The letter warned that the permanent removal of water could lead to long-term consequences for water quality, supply, and costs across the region.

Protecting our water is non-negotiable.

Sen. Michael Lee

Pender County Commissioners have also approved a resolution opposing the interbasin transfer to protect their own water supply.

Ecological and Operational Risks

The CFPUA has warned that the transfer could reduce the baseline flow of the river, which increases the risk of water shortages. Such shortages are particularly critical during droughts, when water providers must impose restrictions to ensure water remains available for essential uses.

The North Carolina Wildlife Resources Commission (NCWRC) has expressed concerns that the reduction in water levels could pose a threat to wildlife, specifically various types of fish.

We believe an interbasin transfer is essentially choosing who succeeds and who doesn’t. It’s picking winners and losers in terms of growth in the future.

Kenneth Waldroup, CFPUA Executive Director

Kemp Burdette of Cape Fear River Watch described the situation as a serious concern, financial and ecological, suggesting that the transfer could lead to scenarios where residents are prohibited from using sprinklers or washing cars due to water-saving measures.

Regulatory Framework

Interbasin transfers in North Carolina require state approval because they shift water resources between distinct river basins. This regulatory oversight is intended to prevent the depletion of available water for downstream users who rely on the same river system for their primary water needs.

The Cape Fear River Basin currently serves as the primary drinking water source for more than 500,000 people in the Lower Cape Fear region.