Final answer:
A utility easement would be granted to the water company, allowing them to install water pipes on a property owner's land. This is part of a broader category of easements, allowing public utilities to provide essential services efficiently. These arrangements are supported by eminent domain principles when done for public use.
Step-by-step explanation:
The type of easement that would be created if a water company had the right to dig up an owner's property to install a water pipe is typically referred to as a utility easement. Utility easements are necessary for public utilities to provide essential services such as water, electricity, and natural gas.
These are a form of easement, which is a legal right to use someone else's land for a specific purpose, often without owning or leasing it.Public utilities are natural monopolies providing crucial services that would be inefficient and overly costly to duplicate. As such, utility easements allow these companies to install and maintain the infrastructure necessary for these services, including laying pipes or wires beneath private property.
Considering their role in maintaining the public's access to vital utilities, these easements are instated under the principles of eminent domain, where the government allows the seizure of private property for public use, often with compensation to the property owner.