Officials from the town of Flower Mound and the Upper Trinity Regional Water District say they want to talk. But they won't. They can't agree what to talk about.

Flower Mound wants to talk about auditing Upper Trinity's management. Upper Trinity wants to talk about the $6.4 million bill for construction delays it sent Flower Mound, its biggest customer.

Some had thought a state court ruling in May, which forced Flower Mound to pay $487,000 for Upper Trinity's legal fees in the town's failed lawsuit against the water district, would begin to heal a deeply wounded relationship.

"Hopefully this will demonstrate to Flower Mound that we were right in what we were doing," Upper Trinity board president Kevin Mercer said. "And they'll come to terms with that and be able to move forward."

But the ruling turned out to be just another notch on a timeline with no end in sight. If the two sides agree on anything, it's that the other won't budge.

"Why hasn't it gone away?" Flower Mound Town Manager Harlan Jefferson asked. "I would say because our main concerns haven't been addressed. We see things going in the opposite direction, as opposed to getting better. It's getting worse."

The two sides remain divided on major issues, including the district's biggest venture to date, the planned $210 million Lake Ralph Hall in Fannin County.

So far, Flower Mound has fought a lonely battle. State courts have rejected its arguments. The state Legislature recently set aside land for the lake. The town's only allies are two small communities, Copper Canyon and Double Oak.

"When you're talking about millions and millions of dollars in overcharged water for Flower Mound citizens, it's worth the fight," town spokesman Michael Ryan said.

The dispute simmered for years until boiling over in 2004, when the town sued the district over plans for a new treatment plant the town claimed was unnecessary. The suit was dismissed, but Flower Mound kept fighting.

Flower Mound contends an audit would show that Upper Trinity – which is governed by representatives from 25 entities, mostly in Denton County and including Flower Mound – has overbuilt infrastructure, leading to high debt and high water rates.

Upper Trinity blames higher rates, in part, on Flower Mound. The district claimed the lawsuit delayed construction, resulting in higher costs. So the district billed the town $6.4 million in 2005. The town hasn't paid.

Mr. Jefferson dismissed the bill as "an attempt to threaten and intimidate us to stop speaking out against the district."

District officials said the figure is up for negotiation, and they haven't ruled out another lawsuit.

"On the one hand, I almost wish we, the Upper Trinity, would just say, 'OK, let's just get beyond this' " and drop the bill, said board member and Krum City Manager Jack Smith. "But the other side is, if my water rates go up because of Flower Mound, why should I have to pay for that?"

Mr. Jefferson said the town won't talk without its two allies, but Upper Trinity officials said the issues involve only Flower Mound. Not so, say those town leaders.

"What concerns us is the long-range planning Upper Trinity has done is not very sound," Copper Canyon Mayor Sue Tejml said. "All we're asking for is they look at the financial numbers with a different perspective."

"It just makes sense to ask for accountability," Double Oak Mayor Pam King said. "The more [Upper Trinity leaders] drag their feet over that [the audit], the more you wonder what's going on."

Meanwhile, the water district is waiting on federal and state permits, which could take several years, before starting construction on Lake Ralph Hall. Flower Mound continues campaigning across Denton County, arguing the district can't afford – and doesn't need – it.

Upper Trinity buys much of its water from Dallas Water Utilities. Flower Mound insists Dallas has enough water to supply Denton County for 50 years, a claim Upper Trinity and Dallas officials say isn't true. Dallas has supported the new lake.

"Dallas ... recognizes that additional new supplies will be needed to meet the projected future demands of a much larger population in the North Central Texas region," Dallas Water Utilities director Jo M. Puckett wrote in an e-mail.

The state water board estimates demand for water in Denton County will more than quadruple between 2000 and 2060.

But Flower Mound argues the district can't afford to add to its debt, which was $286.7 million as of 2005. The district would pay for the lake with bonds. Mr. Jefferson said the district continues to spend money it doesn't have.

Upper Trinity is opening a new treatment plant this summer, a project the town says isn't needed for another five years. The town also said the district built pipelines sized for demand in 2020. District officials have said it's cheaper to build ahead.

"I equate the district with housing foreclosures," Mr. Jefferson said. "People were not careful, buying too much home or furnishing all the rooms at the same time."

Upper Trinity supporters label Flower Mound's campaign as an attempt to cover its own mistakes. Flower Mound's contract, signed in 1999, commits the town to paying for 30 million gallons of water per day, double its average usage last year.

The town pays more than $2 million a year for water it doesn't use, according to the Upper Trinity. Mr. Jefferson said the deal was partly based on the district's faulty projections. He also blamed an economic downturn that followed the 2001 terrorist attacks, which slowed development.

"At times it appears they're fighting that just because they're upset about what happened with the 30 million gallons," Corinth Mayor Vic Burgess said, adding that he would probably support an audit. "What's the harm if you're doing things right?"

But there appears to be little interest among the district's board.

"It's offensive, and I would never agree to it," said Rich Lubke, who represents Highland Village. "We have all the faith in the world in our executive director."

Mr. Jefferson blamed the lack of support for the audit among other entities on indifference and fear of the district going after them with "ridiculous" bills like the one Flower Mound got.

Krum had sided with Flower Mound until last month, when its City Council – under new leadership – passed a resolution renouncing Flower Mound for "a negative campaign ... based on misinformation."

"I thought it was misleading," council member and former district board member Doyle Fletcher said of a Flower Mound presentation.

"It seemed like just a way of trying to make the Upper Trinity look bad in the way it operates."

For example, the presentation argues Upper Trinity charges far more than Dallas for water.

Upper Trinity executive director Thomas Taylor said water rates are higher than Dallas Water Utilities' because the district's rates include the infrastructure costs. If an entity requests pipelines or pump stations, the district pays.

If Flower Mound were to contract with Dallas, the town would pay a lower water rate but would also have to pay a separate amount for pipes and pumps to get the water from Dallas.

"When people say our rates are more expensive than Dallas, they're not comparing apples to apples, and I think they're harming their credibility," Mr. Taylor said.

Mr. Jefferson said the best way to resolve the discrepancies is to conduct the audit.

"Why wouldn't they rush to the table to put all this behind them?" he said.