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North Augusta is creating a new annexation policy to manage growth amid dwindling wastewater capacity. On March 9, the City Council agreed that annexations must either fill unincorporated land surrounded by the city or be linked to commercial development.

The city has limited unallocated sewer capacity, able to service an estimated 2,600 to 3,900 homes. The Horse Creek wastewater treatment plant is undergoing a $70 million expansion. The new policy will prioritize existing developments and donut hole annexations while incentivizing commercial projects over residential, which will face higher costs due to capacity purchases.