Trust In Water Highlights Ways Private, Regulated Water Providers Are Partnering With Small And Rural Communities

West Orange, NJ - As water utilities across the country confront aging infrastructure, tightening regulations and a shrinking pool of qualified operators, Trust in Water is highlighting the findings of its white paper, Transforming Small Water Systems: How Private, Regulated Providers are Helping Small Systems Build a More Sustainable Future. The report documents how communities in West Virginia, Missouri and Pennsylvania have stabilized failing water and wastewater systems through partnership with private, regulated providers.

The report focuses on systems serving fewer than 3,300 people, the small and rural systems that make up the overwhelming majority of the country’s water utilities. According to the Pew Charitable Trusts, these systems account for 81 percent of public water systems in the United States and 93 percent of federal drinking water noncompliance violations. 

“Small and rural communities are challenged to meet some of the highest water quality standards in history and the need to address them with the smallest budgets,” said Dr. Upendra Chivukula, senior advisor at Montclair State University’s Clean Energy and Sustainability Analytics Center,  New Jersey Board of Public Utilities Commissioner Emeritus and Trust in Water Leadership Council member. “This paper documents what happens when those communities gain access to capital and expertise to deal with the emerging challenges. Systems are improved, compliance is restored and residents get safe, reliable service.”

Small Systems Carry an Outsized Burden

The economics are stacked against small systems. Pew projects drinking water infrastructure needs of $4,065 per person for systems serving fewer than 3,300 people, compared with $1,749 per person for large systems. Small water systems serve roughly 7 percent of the population yet account for approximately 16 percent of total drinking water infrastructure need.

The American Water Works Association estimates drinking water systems will require between $2.1 trillion and $2.4 trillion in infrastructure investment between 2026 and 2050, with an annual funding gap of roughly $56.6 billion. The American Society of Civil Engineers reports that more than 9 million lead service lines remain in service nationwide and identifies approximately $625 billion in drinking water infrastructure needs over a 20-year period.

Regulatory requirements continue to expand alongside those costs. EPA’s 2024 drinking water regulations established enforceable standards for PFOA and PFOS, and the agency’s Lead and Copper Rule Improvements require systems to identify and replace lead pipes within 10 years. Compliance requires significant investment.

Workforce Scarcity 

Capital is only part of the challenge. The U.S. Government Accountability Office reports that many utilities have difficulty recruiting certified operators and other skilled professionals, and EPA estimates that 30 to 50 percent of the water workforce may become eligible for retirement during the coming decade. 

What Partnership Has Delivered

The white paper documents case studies in three states where communities chose partnership and saw measurable results:

• West Virginia: Cedar Grove’s transfer of its distribution system followed years of deferred maintenance, chronic leaks and main breaks. The partnership brought approximately $9.3 million in investment and reduced water loss by more than 90 percent. Armstrong Public Service District, declared a distressed utility by state regulators, received more than $9 million in infrastructure investment, a new regional water supply connection, systemwide meter replacement and restored fire protection.
• Missouri: Ironton voters approved the sale of the city’s water and wastewater systems for $3.7 million, bringing improved service to more than 1,400 customers, followed by more than $6 million in drinking water investment and $2.5 million in wastewater improvements. Garden City, which had recorded 27 drinking water treatment violations between 2015 and 2021 and fallen out of Clean Water Act compliance, saw more than 67 percent of voters approve a sale in referendum. The provider has since invested $10 million in drinking water infrastructure and $2.5 million in wastewater improvements.
• Pennsylvania: East Dunkard Water Authority in Greene County served roughly 1,800 customers before a major system failure in October 2023 left residents without water for several days. During receivership, the private provider invested $2 million to repair 82 leaks, then committed $16.1 million over five years for treatment plant upgrades and water main replacements. The transition restored compliance, maintained existing rates and expanded customer assistance programs.

A Durable Path Forward for Rural Communities

Every community’s circumstances are different, but successful partnerships share a common objective: keeping safe, clean, reliable and affordable service flowing to customers. The white paper identifies the capabilities that make that possible, including investment in infrastructure modernization and asset renewal, specialized expertise in utility management and regulatory compliance, expanded workforce and operational support, long-term capital planning, and customer service and affordability programs.

About Trust in Water

Trust in Water is a 501(c)(4) non-profit entity created to provide education about the role of private water and wastewater providers as trusted partners in delivering safe, clean, reliable, and sustainable water solutions to communities across America. For more information on Trust in Water, please visit www.trustinh2o.com.