The Novelty Hill service area is operated as an independent utility from the City of Redmond service area. All utility rates are developed through an analysis of the costs to operate and maintain the system, as well as the cost for replacement of aging infrastructure, and then those costs are shared between the rate payers. The Novelty Hill system assets and number of rate payers are a lot different from the City of Redmond systems. Some notable differences between the two systems are that the Novelty Hill service area can only receive water from the Cascade Water Alliance supply, rather than having an independent well supply like the City system. The wastewater system for the Novelty Hill service area must also convey wastewater a longer distance to connect to the King County system, due to its location.