Marshall has been working more than a year to buy water from Lake O' the Pines to ensure the city's water supply and ensure Caddo Lake's health. City commissioners have been willing to spend a great deal of money to do so.

But the Northeast Texas Municipal Water District board of directors has rejected Marshall's proposed contract, as is. The board feels the city wants it both ways, a long-term contract and a short-term contract, according to Water District General Manager Walt Sears.

"Our position is we want to enter into a long term relationship or a short-term relationship, but not both," Sears said Tuesday, explaining that Marshall wants a long-term agreement with the option of renegotiating.

"Our district's preference is a long-term relationship. If you can renegotiate the contract at any time, you really don't have a long-term contract, you have a short-term contract," he said.

Sears said Marshall's original financial proposal has not materially changed since negotiations began.