Which of the following describes a nonmunicipal community water system?

A nonmunicipal community water system is characterized by its service to a limited number of households, often in rural or suburban areas that do not receive water supply from a city or municipal provider. These systems can be privately owned or operated by homeowner associations, but they primarily exist to provide drinking and other water-related services to small communities.

The context surrounding the other options clarifies why they do not define a nonmunicipal community water system. For instance, a system operated by a municipal government is distinctly different, as it falls under the jurisdiction and management of a local or city government entity rather than being a nonmunicipal system. Additionally, stating that a nonmunicipal system is regulated solely by federal standards overlooks that many of these systems must comply with state regulations too. Exclusive service to industrial facilities does not align with the definition of a community water system, which typically focuses on serving household water needs rather than industrial purposes. Thus, the correct choice emphasizes the limited residential focus of nonmunicipal water systems.