Iowa American Water, a subsidiary of American Water (NYSE: AWK), the largest publicly traded U.S. water and wastewater utility company, has announced the acquisition of the City of Blue Grass wastewater system for $2 million, according to a news release.

On July 12, 2022, the Iowa Utilities Board approved the acquisition. The newly acquired wastewater utility, Iowa American Water’s first sewer system operation in the state, adds approximately 750 wastewater customers to the company’s Iowa Quad Cities service area, the release says.

“Our team is excited to provide an additional service to our water customers in Blue Grass,” said Randy Moore, president of Iowa American Water. “Since 2017, we have had the privilege of partnering with Blue Grass to provide clean, safe, and reliable service to the community, sharing our expertise while making critical investments in aging systems. We look forward to continuing that commitment as the community’s new wastewater provider.”

According to Blue Grass Mayor Brad Schutte, “The sale of the wastewater system to Iowa American Water is in the community’s best interest because it will provide residents with industry experts focused on upgrading the wastewater system just as Iowa American Water has done with our community’s water system.”

“The city will benefit from capital investments we would not have been able to make, and Iowa American Water will get the wastewater system back into compliance with the Iowa Department of Natural Resources (IDNR) in a timely manner,” Schutte said.

Iowa American Water plans to invest approximately $4 million in the city’s wastewater system to address issues as well as upgrade safety and security systems, the release says. Ongoing capital investment plans have been developed to address compliance with permit requirements and improve operational efficiencies.