Public entities are vulnerable to inverse condemnation actions primarily because of their water delivery systems, as unlawful takings frequently occur with physical injuries to real property caused by problems with the delivery systems. These systems (i.e., infrastructure and/or public improvements) are inherently prone to accidental and temporary takings involving breaks, leaks, backups, releases, and overflows (i.e., uninvited water).

This article focuses on inverse condemnation with respect to public water systems and discusses legal mechanics, available protections, and liability. It also examines containment strategies like insurance placement and corporate structure as means to effectively manage the risks from inverse condemnation actions.