A Public Utility District is a community-owned, locally regulated utility created by a vote of the people under RCW 54 as passed by Initiative No. 1.

In 1929, the Washington State Grange collected more than 60,000 signatures – twice the number necessary – to send Initiative No. 1 to the Legislature, allowing rural communities to form their own publicly owned utilities. When the Legislature failed to act, the measure went to a statewide election, where it passed in 1930 with 54 percent of the vote. The new PUD law went into effect in 1931.

The law, now known as RCW 54, authorized the establishment of public utility districts to “conserve the water and power resources of the State of Washington for the benefit of the people thereof, and to supply public utility service, including water and electricity for all uses.