A revenue stream runs through it.

• Position: TRIAD REGION

Eden, the idyllically named city where the Dan and Smith rivers converge near the Virginia state line, has tried to replace lost textile jobs by rebranding itself as a destination for kayakers and other outdoor enthusiasts. That took a hit in February, when as much as 39,000 tons of coal ash flowed into the Dan from a broken stormwater pipe at Duke Energy Corp.'s retired Dan River Steam Station nearby (cover story, April 2014). Media outlets -- and even Duke Energy--reported that the station was in Eden. Though the city limits abut the utility's property, the spill site is 31/2 miles downstream from where the city gets its drinking water.

With the lucrative...