Illinois American Water is the largest regulated water utility in the state, providing safe, clean and reliable water and wastewater services to approximately 1.3 million people across 148 communities and operating a quality control and research laboratory in Belleville.
The company, as a subsidiary of American Water, has the resources and expertise necessary to address critical issues facing the industry, like treating for contaminants of emerging concern, climate variability impacts, cyber-threats, emerging regulatory compliance, and removing lead service lines. And with water and wastewater systems aging nationwide, Illinois American Water is investing significant capital to address infrastructure and resiliency needs.
Since 2015, Illinois American Water has invested more than $2 billion in water and wastewater system improvements across its service territory. During 2025, approximately $280 million was directed to system upgrades, from new pipes to hydrants to technology. The company is planning $570 million in completed or planned investment through 2027, with $412 million in water system and $158 million in wastewater system improvements.
Much of this investment is directed toward critical improvements for acquired water and wastewater systems. For many smaller municipalities, infrastructure challenges that require significant capital investment are a burden, and often capital improvements are thereby delayed, increasing the scope and cost of needed improvements. This can negatively impact rates and affordability.
When Illinois American Water looks to purchase a system, they develop community partnerships and work with local governments and organizations to understand their needs and usage, explore available options for delivery and treatment, and assess the most cost effective, sustainable, and environmentally friendly solution for addressing the communities urgent water and wastewater system infrastructure needs. The company analyzes how an acquisition will affect affordability, including the impact of the acquisition on future and current customers.
Since 2017, Illinois American Water has spent more than $269 million to purchase 21 water and wastewater systems under the Illinois System Viability Act, adding 96,000 connections in 28 communities across 30 counties. One such system was owned by the Village of Ransom, which for years faced a drinking-water-quality crisis, as two groundwater wells that supplied the system showed high levels of radium, leading the U.S. EPA to issue a consent decree and forcing the Village to provide bottled water to residents. By selling to Illinois American Water, Ransom avoided the system investment costs required to meet stringent state and federal regulations. Upon purchase, Illinois American Water invested $2 million to install 10 miles of water main and connect the Village to the nearby Streator service area. Within the first year of ownership, Ransom residents and businesses gained access to clean, safe drinking water in compliance with EPA requirements, satisfying the consent decree, and ceasing distribution of bottled water. Despite required initial investments, Ransom residents saw costs decrease post-acquisition. Operational efficiencies gained by connecting to Illinois American Water’s larger service area meant customer bills declined by 15% for an average user.
Through thoughtful, sustained investment, the company protects the customers and communities that it serves, supports economic growth, and builds the resilient infrastructure needed to serve current and future generations. With the help of the Illinois Chamber of Commerce, Illinois American Water is active in the State Capitol supporting policies that help the water industry provide clean, safe, and reliable water and wastewater services for Illinoisans. Dane Thull, Director of Government Relations for Illinois American Water, serves on the Chamber’s Board of Directors.
Illinois American Water is a solutions provider for utilities and communities and welcomes the opportunity to learn about your community’s water and wastewater needs. Contact: Chris Guy, chris.guy@amwater.com.