Resolution 2098 was on its way up the judicial ranks when Arizona's Supreme Court refused to hear the case this week.
The ruling officially ends the effort to get the referendum -- signed by 1,900 Payson and Star Valley residents, and submitted to the Payson Town Council September 2005 -- on the ballot.
"The legal challenge to the adoption of the resolution, which approved the contracts, is for all intents and purposes over," said Town Attorney Sam Streichman.
The Supreme Court's decision bars registered Payson voters from voting on the referendum, thereby allowing the town to proceed with payment to George Randall and Roy Haught of $750,000 for the excess water from their well in Star Valley after Horton meets the water requirements for his company's three new subdivisions in Payson.
"(The ruling) was disappointing," said Star Valley council member, Chuck Heron. "From our standpoint, we're still worried about the water coming out of that well."