Iowa American Water, a subsidiary of American Water, the largest publicly traded U.S. water and wastewater utility company, announced Thursday the purchase of the City of Donahue’s water and wastewater systems for $1.75 million, according to a news release.

The acquisition, which will add 140 water and 118 wastewater customers to the company’s Quad Cities service area, was approved by the Iowa Utilities Board in Des Moines on July 20, 2023.

“Iowa American Water is excited to expand our services and directly serve our new customers in
Donahue,” said Randy Moore, president of Iowa American Water. “Since 2020, we have had the
privilege of partnering with Donahue to operate and maintain the city’s water treatment plant to
provide clean, safe, and reliable drinking water to the community. We appreciate the City’s trust and confidence in our team of water and wastewater professionals.”

“The sale of the water and wastewater systems to Iowa American Water provides Donahue residents with industry experts focused on upgrading the water and wastewater systems as needed,” said Mayor Ken Schoenhaler. “Donahue will benefit from capital investments which will allow the community an opportunity for economic development and growth.”

Schoenhaler added that Iowa American Water has operated the Donahue water system for about three years and has done an exceptional job. “I’m confident that partnering with Iowa American Water is the best, long-term solution for our residents and community.”

Iowa American Water plans to continue investing in the city’s water and wastewater systems to
address infrastructure issues as well as upgrade safety and security systems. Ongoing capital
investment plans have been developed to address compliance with permit requirements and
improve operational efficiencies, the release says.

Donahue customers will receive a letter in the mail from Iowa American Water providing
additional information about the new water and wastewater services available to them. To learn
more, customers can also visit here, click on Customer Service & Billing, then For
New Customers.