Indiana Code Title 6. Taxation § 6-1.1-10-6

(1) the corporation owns a water system or waterworks;

(2) the corporation is, pursuant to a contract, supplying its entire output of water at wholesale rates to a city or town of this state;  and

(3) the city or town which receives the water owns at least ninety-five percent (95%) of the corporation's capital stock.

(1) fixed dividends are payable to the stock owner at a rate not to exceed six percent (6%) per year;  and

(2) the stock owner has no further right to participate in the profits of the corporation.