Foxconn Technology Group wants to tap 7 million gallons of water a day from Lake Michigan to meet its needs.
The city of Racine asked the state Department of Natural Resources for permission Monday to divert water from the lake primarily to serve the planned display panel factory and campus.
The Milwaukee Journal Sentinel reports the permission is needed under an interstate agreement that guides water use in eight states that border the Great Lakes.
Under the compact, all water shipped out must be returned to Lake Michigan minus what's lost to evaporation or what's incorporated into Foxconn's manufacturing process.
The Taiwanese company says it could invest up to $10 billion on the display panel factory that could employ up to 13,000 people.
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