January 21, 2002

The Annual Meeting of Crystal Clear Water Supply Corporation will be held on February 21st, 2002 at 7:00 P.M. at the V.F.W. Hall in Geronimo, Texas. The Proxies are due back no later than 4:00 P.M. the day of the meeting, so they may be verified by W.L. Glenewinkel, Secretary of the Board of Directors of Crystal Clear Water.

October 18, 2001

The Special meeting was held on Oct 18, 2001. Thank you to all who were in attendance or who sent in proxies. The vote was 813 for becoming exempt from paying property taxes. This was almost 30% of our voting members! Our attorney is filing with the appropriate counties for the tax exemption.

September 10, 2001 -

Dear Customers;

We here at Crystal Clear Water Supply Corporation would like to inform you of some changes in the water supply business. While we strive to supply everyone with the best and safest drinking water in this region, we also make every attempt to keep your rates as low as possible. Due to changing regulations in our water supply which for many years was exclusively Edwards Aquifer water, we like most Edwards Aquifer users have had to explore alternative sources of water.

Our Board of Directors had great forethought and have secured other sources which are purchased and/or leased from local water authorities, neighboring utilities and citizens. All of these pass the same strict State and Federal regulation that the water we produce has to pass. These new sources of water bring additional expenses to produce and transport the water into our system and have a direct effect on your water rates.

While it is inevitable that rates go up, we are working on solutions to keep them as low as possible. We are proposing to become exempt from property taxes, which would save a considerable amount of money each year. But we need your help!

Before we can apply for exemption from property taxes, we must amend Crystal Clear bylaws to allow for the transfer of Crystal Clear's assets to a similar entity if Crystal Clear ever ceases to exist. We are having a special membership meeting to vote on this amendment. The meeting will be held on October 18, 2001 at the V.F.W. Hall in Geronimo, Texas at 7:00 p.m.

Enclosed you will find a proxy to sign and return before the special meeting if you cannot attend. We need 15% of our members to vote in favor of the bylaws amendment in order to qualify for this exemption from property taxes (to begin in 2002). Remember, your vote in favor of this exemption will help in keeping your rates as low as possible!

Please plan to attend the meeting, but if you can't please sign the proxy and return it to our office. If you have any other questions or comments please call Mark Speed at 1-800-659-1031 Ext. 23. Thank you.

June 26, 2001-

Attention: Crystal Clear Water Supply customers;

We are faced with yet another rate increase, we would like to take this opportunity to point out just a few reasons why this is necessary. Enclosed is a comparison chart that shows the current water rates of some other suppliers in our region. As you will see our increased rate is still at or below the average and may require additional increases in the future. Some of the reasons for such a drastic increase now are the increase in the cost of water acquisition and even higher cost of production and transfer of the water to try and meet the current needs, as well as our needs well into the future. If you have any questions about these issues please call the office of Crystal Clear and we will assist you in answering them.

Notice:

It has come to our attention that there are instances where 1 meter is serving more than one residence at a time. This is a violation of our By Laws that are implemented by federal, state and our own governing bodies. It is also substantial loss in revenue of impact fees and monthly minimum charges that are required to purchase the amount of water, as well as supply equipment necessary, to supply the additional residences. We realize not everyone may be aware of these rules, but we respectfully request that if you are in violation of this rule that you notify our office. Please note that we are only allowed one residence per membership and all extra residences will be required to pay monthly penalties and/or additional monthly minimums and impact fees.

Thank you, Mark Speed - Manager