In a four to three vote Thursday afternoon, the Biloxi City Council rejected a proposed three-year contract with Eco Resources Incorporated.
The company's been in charge of the city's water and sewer system for the past twelve years.
Mayor A.J. Holloway had asked the council to reconsider a contract he negotiated with the company to continue running the city's water and sewer departments except for heavy construction duties, which would be the responsibility of city workers.
The mayor believes Biloxi has one of the best water and sewer systems in the state, and the council will regret their decision.
"I think this was a bad day in Biloxi's history . You know, I think that this water and sewer contract has been working well for the last twelve years. It wasn't broke so you didn't have to fix it," Mayor Holloway said.
An extension of the city's current contract with ECO ends next Tuesday.