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City officials are guardedly optimistic that a lawsuit against Texarkana, Texas, may soon be resolved. A special workshop set for Monday lists a consideration of an ordinance that would band together the entities involved in a water lawsuit to form a “municipal water district.”

Seven member cities joined together to file the suit against the city and Texarkana Water Utilities in 2001, alleging they had been overcharged for water for two decades. Annona, Avery, New Boston, Maud, Wake Village, Hooks and DeKalb said the agencies did not follow water supply fees and guidelines establis...