MATEWAN — The Matewan Town Council took a step forward with the Thacker Water Project Tuesday after Mayor Shelia Kessler signed an agreement presented by Triad Engineering for the new location of a water tank.

The tank’s original location was under dispute because the location was permitted for mining. The new location, which will be located at the mouth of Thacker Branch, was agreed upon by CAM Mining and reviewed by Matewan’s attorney, Ronald Flora. The agreement further states that the coal company will be responsible for damages made by mining that the company cannot mine within 50 feet of the site, and 100 feet for blasting.

The council also discussed the proposed 3 percent payment increase by Veolia Water. Kessler said a similar increase was requested for 2009, but was not signed, citing that the town is only under contract for an increase dictated by the Consumer Price Index. Kessler also said a rate increase for clients has been fought, but with the increase, a substantial hike is likely. The issue was tabled until the council’s February meeting to determine the contractually agreed upon rate.

In other actions, the council:

• Discussed bidding on the GSA tracts of land which will go up for auction March 4 at Matewan Town Hall;

• Began talk of creating a board of tourism for Matewan; and

* Discussed methods of helping merchants in town to understand the business and occupational tax.

The council’s next meeting will be conducte Feb. 9 at 6 p.m. at the Matewan Town Hall.