In a poll conducted by American Research Group this fall, 42% of respondents opposed the city's attempt to pursue control of its water supply while 39% favored it. With a 4.9% margin of error, the poll is a toss-up. But one poll statistic is alarmingly clear: 82% of those surveyed didn't vote in the 2003 initiative. Pennichuck estimates that the cost of acquisition could cause a 40% price spike for Nashua customers because they would be required to subsidize water transport to neighboring communities. Those cognizant of the price tag and the city's intention to hire a French company to run the new utility have some political fervor. Worth noting: Pennichuck's second-quarter profit were hampered by a $70,000 appeal-related cost to battle City Hall. Pennichuck's stock pays an attractive 3% dividend yield and has a low beta, a measure of market correlation, of 0.4. At a price-to-earnings ratio of 48, the shares aren't cheap, but they've ascended 15% in 2009, outpacing the Dow Jones Industrial Average and S&P 500 Index. Larger peers Aqua America ( WTR) and California Water Service ( CWT) are more affordable. Investors seeking a rare small-cap legal-arbitrage play should drive up to Nashua and see what they can dig up. Or better yet, take a swim. -- Reported by Jake Lynch in Boston.