Demorest seeks Tallulah Lake property for long-term water supply
The City of Demorest, Georgia, is pursuing approximately 10 acres on Tallulah Lake in Rabun County through eminent domain to secure a long-term water supply. This plan is facing strong opposition from the property owners, who have launched an online petition and are fighting the condemnation. While the project is not for a data center, concerns about future water demand for data center development in Habersham County are part of the broader debate.
The City of Demorest, Georgia, is seeking to acquire 10 acres on Tallulah Lake in Rabun County through eminent domain to expand its water system and secure a reliable long-term supply for thousands of customers across Northeast Georgia. City Manager Mark Musselwhite stated that the project is a crucial part of a 50 to 75-year water-supply strategy intended to serve a regional system.
The proposed condemnation has met with significant opposition from the property owners, including Johnny and David Irvin and J&D Irvin Holdings. Clint Irvin has organized an online petition, "Protect Tallulah Falls: No Eminent Domain for Demorest's Water Expansion," arguing that the city's actions threaten private property rights and local control in Rabun County. The petition had garnered over 8,000 signatures as of August 19.
A public hearing on the proposed condemnation is scheduled for September 1 at Demorest City Hall. The Irvin family, who purchased the property in December 2025, declined Demorest's offer to buy the land, leading to the city's eminent domain proceedings. Musselwhite emphasized that the city's interest in the property predates the current ownership and that the property owners are entitled to compensation.
While both sides confirm that the proposed water project is not for a data center, the discussion has become intertwined with concerns about data center development in Habersham County. Habersham County recently adopted a new Unified Development Ordinance with tightened regulations for data centers, including requirements for water and electricity use. Property owners opposing the eminent domain express concern about the expanded water capacity potentially supporting future data center demands, despite Demorest's assurances.