In Clear Lake City Water Authority v. Clear Lake Utilities Company, 549 S.W.2d 385 (Tex. 1977), the Water Authority had the governmental power, the "public duty," to determine whether, on any particular date, it would be in the best interests of all of its customers and the public in general, to extend water and sewer service to a particular person or entity. Id. at 392. The agreement at issue between the Water Authority and the Utilities obligated the Water Authority to meet all water and sewage treatment needs for Utilities and precluded the Water Authority from extending these services directly to a certain group of landowners, under terms and rates that it deemed best. Id. The Texas Supreme Court found that by the agreement, the Water Authority had attempted to bargain away its governmental power to determine "whether, on any particular date, it is in the best interests of all of its customers and the public in general, to extend water and sewer service to a particular person or entity." Id.