Based on a comprehensive review of inter-local water agreements in North Carolina, this guidance document reviews tips relating to issues utility managers need to be aware of before and while entering into an agreement with another utility. Many of these tips apply to creating a water purchase agreement, whether for regular use or for emergency use. The tips are written in the form of answers to a key set of questions that we believe should be asked (and in most cases addressed) as agreements are developed. Many of these tips apply to creating a water purchase agreement, whether for regular use or for emergency use. These guidelines are a critical supplement to many templates of inter-local agreements that water systems use.