ALAMEDA, Calif. — A water rights dispute has stalled plans by California’s Imperial Irrigation District to sell $250 million of Build America Bond certificates of participation next week to finance new power-generating equipment.

Two landowners filed a reverse validation action challenging the bond resolution the IID board approved June 22. The suit appears to stem from a long-running dispute over water rights, which has no bearing on the energy financing, the district’s general counsel, Jeff Garber, said Thursday.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.