WAILUKU, Maui — Maui County appears poised to make a push toward acquiring 13,166 acres of privately owned watershed in the West Maui Mountains that includes Na Wai 'Eha, the "four waters" of the 'Iao, Waihe'e, Waikapu and Waiehu streams.

County spokeswoman Mahina Martin yesterday said county attorneys will go before the County Council soon to seek approval for selection of a special counsel to handle the matter.

The county has had testy relations with landowner Wailuku Water Co. over the valuable watershed lands and the company's system of ditches, intakes and reservoirs. Former Mayor Alan Arakawa threatened to seize the property through condemnation.

Martin said it would be premature to characterize the move to hire special counsel as the first step toward initiating condemnation proceedings.

Mayor Charmaine Tavares, who took office in January, said in a statement yesterday that "for many years, the County of Maui and members of the County Council have committed funding toward this acquisition and look forward to an amicable resolution with Wailuku Water Co."

Wailuku Water Co. President Avery Chumbley yesterday said he has not been in contact with the administration since Tavares became mayor. He suggested it would be a costly misstep for the county to launch condemnation proceedings without first negotiating with his company.

"I have had no direct discussions with the administration, either with regard to condemnation issues or friendly acquisition negotiations at this point," Chumbley said. "We've always been ready, prepared and willing to sit down and discuss how the county can acquire our resources and assets for the betterment of public services."

He said the company previously approached the county to sell the 13,166 acres and its distribution system, but one sticking point has been over whether the county should assume the contracts between Wailuku Water Co. and its customers, which include Hawaiian Commercial & Sugar Co., Maui Pineapple Co., diversified farming interests and the Waikapu golf course.

The watershed, long controlled by agricultural interests, sits above the 'Iao Aquifer, which supplies water to Maui's most populated areas and has supported new development in Central and South Maui. It has been the subject of much controversy in recent years as plantations have scaled back farming operations and as increased growth has stressed the water resource.

Councilwoman Michelle Anderson, chair of the Water Resources Commission, yesterday welcomed county action on acquiring the lands.

"The council has always supported restoring the stream flow to support habitat for native flora and fauna as well as traditional and customary Native Hawaiian practices, consistent with the public trust doctrine and the state Water Code. This is long overdue," Anderson said.

The county also received word yesterday that it is one of 16 finalists for the U.S. Environmental Protection Agency's Targeted Watersheds Grants Program.

The county could receive up to $900,000 in EPA grant money that would be combined with up to $9.2 million from the county, the state Office of Hawaiian Affairs and other parties to purchase the West Maui Mountains watershed, the EPA said in a news release. The county already had budgeted $7.2 million toward appraising and acquiring the land.

Reach Christie Wilson at cwilson@honoluluadvertiser.com.