A Municipal Utility District (MUD) is a special-purpose district or other governmental jurisdiction that provides public utilities (such as electricity, natural gas, sewage treatment, waste collection/management, wholesale telecommunications, water) to the residents of that district. MUD are formed by a vote of the area, and represented by board of directors who are voted on by the local people. As governmental bodies, they are usually nonprofit.
Public Utility Districts (PUD) are similar, but are created by a local government body such as a city or county, but has no authority to levy taxes.