American Water, the largest regulated water and wastewater utility company in the United States, has released a comprehensive new white paper titled Community Benefits of Water and Wastewater System Partnerships. The report details how municipal partnerships with regulated utilities can resolve critical infrastructure challenges while unlocking financial resources for broader local priorities.
Drawing on case studies from across its national footprint, the white paper illustrates how system acquisitions provide immediate financial relief and long-term stability for municipalities facing mounting capital demands.
Key takeaways from the white paper
- Financial Rescue in Pennsylvania: In McKeesport, Pennsylvania, the local municipal authority leveraged a 2017 system sale to Pennsylvania American Water to avoid municipal bankruptcy. The $40 million in net proceeds enabled the city to stabilize wastewater rates, upgrade customer service, and fund essential infrastructure projects.
- Infrastructure Modernization in California: Following California American Water’s 2022 acquisition of the Bellflower municipal water system—which faced aging asbestos-cement mains and rising arsenic levels—the utility completed $4.5 million in upgrades, replaced thousands of feet of outdated mains, and slated over $10 million in additional improvements through 2027.
- Massive Capital Commitments: To address nationwide infrastructure renewal, water quality, and resiliency, American Water plans to invest approximately $48 billion in capital improvements over the next decade.
Perspectives from local leaders
Municipal leaders featured in the study emphasized the tangible benefits of partnering with experienced, regulated utility operators.
“The crux of this transaction is bringing financial stability to the City of McKeesport and saving our taxpayers from Act 47 municipal bankruptcy,” McKeesport Mayor Michael Cherepko, said. “The privatization of local sewage services truly makes sense… providing consistent, regulated utility services to our community.”
Bellflower Mayor Sonny Santa Ines echoed similar sentiments regarding his city’s transition:
“It is a win for us, because we are able to have a partner to provide quality service at good prices for our residents. At the same time, our residents are assured that they have quality water and reliable water coming to their faucets.”
Celebrating its 140th anniversary in 2026, American Water continues to provide safe, clean, and reliable services to approximately 14 million people across 14 states and 18 military installations. The full white paper is available for review on the official American Water website.
