09/16/2025 | News release | Distributed by Public on 09/16/2025 12:16
Private water and wastewater providers are professional utility companies that specialize in providing vital water and wastewater services to customers across a specific service area. These providers own, operate, maintain and make necessary investments to upgrade or improve water and wastewater infrastructure in communities across America.
American Water is the largest regulated water and wastewater utility in the U.S., serving over 14 million people across 14 states and 18 military installations. Founded in 1886, we employ over 6,700 professionals and operate in approximately 1,700 communities. Over the next decade, we plan to invest $40 billion to $42 billion in infrastructure across our footprint. Our investments include replacing aging infrastructure, upgrading existing or constructing new facilities, ensuring fire protection and complying with the latest water quality standards.
What is water privatization?
Water privatization refers to the process of transitioning ownership of a water or wastewater system from a government entity (i.e., municipal or county) to a private provider, a professional water company that is regulated by the state public service commission. This approach empowers communities by delivering smarter, more sustainable water and wastewater solutions through a strategic move that enhances service quality, infrastructure and by partnering with water and wastewater experts. We develop partnerships with community members and work with government agencies and local organizations to understand their needs and usage, explore available options for delivery and treatment, and assess what is most cost effective, sustainable, and environmentally friendly. Over 10% of the population of the United States is served by private water and wastewater providers like American Water.
Private water and wastewater companies purchase the existing assets of a city's water or wastewater system and assume full responsibility for investing in, operating and maintaining the system. These assets-treatment plants, pipes, pumps, sewer systems, and the like-are not only critical infrastructure but are also meticulously maintained to help ensure regulatory compliance and long-term reliability. Proper stewardship of these assets means investing in the system's future to help ensure reliable, high-quality service to the communities served.
Most importantly, private water providers, like American Water, are dedicated to delivering safe, clean, reliable and affordable drinking water service from source to tap and responsibly recovering, treating and returning wastewater to the environment.
Who Benefits? Everyone.
Click here to learn more about how we help communities.