Ark. Code Ann. § 14-54-202

Any municipality in this state which borders on a state line, and which is separated from a municipality in an adjoining state only by the state line, may enter into agreements with the adjoining municipality whereby either of the municipalities agrees to furnish certain services or facilities for the other or whereby the municipalities agree to furnish, jointly or cooperatively, any governmental service or facility or to exercise or enjoy any power or authority which the Arkansas municipalities involved may furnish, exercise, or enjoy under the laws of this state to the extent that the laws of the state in which the adjoining municipality is located permit such joint or cooperative activity.