S.C. Code § 58-7-40
All private corporations, subject to the jurisdiction of the South Carolina Public Service Commission, engaged in the business of providing water service and selling and distributing water for domestic, commercial or industrial purposes may, if the approval of the South Carolina Public Service Commission is obtained, enter into contracts with any incorporated municipality or any special purpose district upon terms and conditions to be mutually agreed upon (including an agreement by the municipality or public service district to hold the private corporation harmless for any error by the municipality or public service district regarding the payment or nonpayment of sewer charges) by which the municipalities or special purpose districts shall (a) constitute the corporation the agent of the municipalities or special purpose districts, for the purpose of collecting such charges as the municipalities or special purpose districts shall from time to time impose upon those who utilize its sewage disposal facilities; and/or (b) empower the corporation as the agent of the municipalities or special purpose districts to disconnect water service upon failure of any user to pay sewer charges.
S.C. Code § 58-7-40
Section 1 of 1965 Act No 381 (1965 (54) 683), contains legislative findings relative to this section, and provides:
"The General Assembly finds that in certain areas in South Carolina domestic, commercial and industrial water service is supplied by private corporations under the jurisdiction of the South Carolina Public Service Commission. Frequently incorporated municipalities and special purpose districts are located within the same areas. Such municipalities and special purpose districts are empowered to impose sewer service charges but have no ready means of collecting the charges inasmuch as they do not render water service. Such municipalities and special purpose districts have the power to enter into contracts with private corporations to collect such sewer service charge but there is no corresponding statutory authority permitting the private corporation to act for such municipalities and special purpose districts to collect such sewer service charge or to suspend water service in the event that the bill for sewer service is not paid, whether the sewer bill is rendered separately or is combined with the water bill into a single bill."