( 1 ) THESE six petitions give rise to the controversy pertaining to duties and obligation of local-Bodies (as part of local self Government) to ensure water-supply, within their area, for which said authorities are created under legislative enactment vis-a-vis rights, duties and obligations of the citizens who enjoy the basic amenity like water which is, like air, the core of life. Duty to supply water, in modem times, largely and invariably barring exceptions, rests with local self-Government. No local self-Government can, in the present day complex growth of society, perform its duties unless it has funds and provision to generate funds for its continued existence.

( 2 ) RESOLUTION No. 2312a, dated May 1, 1901-Government of India (F and C) dealt with the concept of taxation and its limits. It justifies Imposition of tax and mentions that limit may be exceeded in special cases, such as sinking funds for discharging duties, or to meet expenditure of project on a large scale. Resolution, however, notes that surplus available for investment should be taken into account for administrative measures for reduction of taxes.

( 3 ) ANOTHER Resolution No. 3463/xi-27i-E dated September 19. 1916, gives an Insight to the object and purpose of vesting local self Government with right to Impose taxes, octroi, surcharge, etc. By passage of time, experience showed that system of indirect taxes could be resorted. As the people got involved in the process, they became enlightened and realised additional measures have to be taken, i. e. . to resort to taxes subject to balance between two factors, namely, (i) payment for definite service rendered and (ii) to determine actual expenses of that burden to be borne by a local authority. Payment of tax for definite services covered taxes such as water tax, scavenging tax, tax on Vehicle, animals, property, etc.

( 4 ) THE aforementioned resolution dated September 19, 1916 mentions that in modem community, it cannot be left to each individual member to make voluntary provision for all essential things for communal life. Whether need is of supply of water or a system of drainage or education, it is incumbent on local authority to place some provision at the service of every member of the community whether he is able to make a proportionate contribution or not. Municipal activity cannot be left on any basis of purely economic exchange but it must be regarded as "a necessary contribution towards public at large, which must meet as a civic duty". Some basis is, therefore, necessary for the levy of such compulsory taxes. Resolution also noted the necessity of fairness in the actual work of assessment. Unless assessing authority and the process for assessing is scrupulously honest and its imposition is impartial, tax otherwise becomes as bad as the worst and municipal Government will Immediately show cracks-symbolising its failure.

( 5 ) THE fundamental principle of taxation, in such matters, should be limited to meet the requirements of actual expenditure and in special cases-to take care of expenditure like-sinking fund, for repayment of debt or projects on large scale. (Vide Government of India (F) and (C)Resolution No. 2312 dated May 1, 1905 see (1990) SCC 109. No fee to be levied if revenue earning is substantial. There should be no unjust enrichment particularly in the matter of public law, JT 1999 (5) SC 237 (Pr 40 to 43 ). The other Important factor is-that it is kept as low as possible and as nearly uniform as possible ; it does not bear unfairly upon any section/class. IMPORTANCE OF WATER

( 6 ) NO city, town, locality or area. not even as an exception, is there which is not affected by water crisis. Scarcity of water and its erratic supply in urban areas is a chronic problem. Situation becomes acute, sometimes unbearable, with mercury shooting up. Even the towns, surrounded by rivers or which are situated on the banks of rivers (like Allahabad, Kanpur, varanasf and Lucknow) are no exce