I have no idea what the answer is but let us know when you find out. I'm curious.

Good luck is all I can say. Small town water departments are mafia like organizations. I would contact the public service commission. My neighbor had to do that with carbon hill water and the governor got involved to force them to install a water line to their house. The was in the Riley governor days. My cousin had the same issue with carbon hill. So he dug his own water line and t’d off our cabin water line. He just pays us the bill. I later found out that the water department guys were too busy chasing water main breaks in carbon hill to deal with anything else.

Time to quit guessing why they did what they did and just go up the chain until you get the real answer. Be nice/respectful but determined.

I would also be on the phone to my district county commissioner.

What water service receives a portion of the taxes you pay on that property? If the one you are asking about is the one who does, then I see no reason for them to deny you service unless it is a zoning issue, but based on what you said earlier in the thread, it was no secret what your plans were for this property and that would have been the time to let you know that there would be issues in providing service on the scale you need.

If it's zoned commercial, they should be able to provide enough water for businesses , period. It's on them.