Amends GS 162A-900 concerning limitations on local governments' allocation of water or sewer service for residential development. Limits the scope of the statute by defining "local government unit" to mean a political subdivision that serves more than 1,000 residential service connections (was defined by statutory cross-reference alone). Makes organizational and technical changes to subsection (a). Generally prohibits local government units from implementing a scoring or preference system to allocate water or sewer service among applicants for service for a residential development, eliminating the existing four qualifications to the prohibition. Adds a new provision to prohibit withholding the allocation of water or sewer service among applicants for service for residential developments if allocation capacity is available. Requires local government that receive public funds for water or sewer infrastructure to (1) monitor available water and sewer capacity by preparing and publishing a quarterly report with four described components; and (2) make all reasonable efforts to expand capacity consistent with growth and demand by taking three identified steps, including annually submitting an expansion plan to the State Water Infrastructure Authority (Authority). Establishes three actions a local government must take when capacity is unavailable due to physical or environmental constraints, including publishing a written explanation and providing a resolution timeline, developing and implementing a temporary allocation policy to prioritize critical development projects, and notifying applicants of their status in the allocation process and providing estimated timelines for service availability. Creates a right of action for an aggrieved party to seek injunctive relief to compel compliance with the section's requirements. Provides for venue and lists available relief, including ordering the approval of applications where capacity exists, mandating corrective actions, and assessing a civil penalty up to $5,000, or $5,000 per day for continuing violations. 

Amends GS 159G-71, adding to the duties of the Authority monitoring the compliance with water and sewer allocation requirements of GS 162A-900 and providing technical assistance to local government units to satisfy those requirements.