The member governments of Tampa Bay Water have established binding arbitration as described in the Governance Agreement as the sole and exclusive method of resolving all disputes between Tampa Bay Water and a host member government (a member in whose jurisdiction a proposed water project is located) relating to Primary Environmental Permit applications.

Hillsborough County and the Hillsborough County Environmental Protection Commission each have the right to request binding arbitration to resolve disputes related to Water Use Permit Applications and Environmental Resource Permit Applications for Tampa Bay Water's new and existing water supply projects located within the County. Refer to Section 1.01 of the Governance Agreement for a full definition of what constitutes a Primary Environmental Permit.

The member governments retain their individual right to participate directly in disputes related to the issuance, modification, renewal or enforcement of any environmental permit that is not a Primary Environmental Permit. This would include applications for environmental permits where Tampa Bay Water is not the applicant or co-applicant. In general, petitions and hearings would be held in accordance with Chapter 120 of the Florida Administrative Code.

Refer to Sections 3.13 through 3.16 of the Governance Agreement for a full description of the dispute resolution method.