Transferring PWSD #1 of Stone County’s water system to Missouri American Water is an opportunity to modernize an aging system and secure the investment it needs, without new debt for the district or the large rate increases that funding the work alone would require. By transferring the system to Missouri American Water, the district would secure at least $5 million in priority investments over the first five years with no new debt for the district. Residents would benefit from improved fire protection; targeted replacement of undersized and leaking mains; a water-loss investigation to address the roughly 65% of treated water now lost; and upgraded water-quality and sampling equipment. Missouri American Water would assume all operational and regulatory responsibilities and bring long-term capital planning to a system built in the late 1960s and early 1970s — helping ensure safe, clean, reliable and affordable water, and real fire protection, for Stone County for generations to come. A two-thirds majority of voters voting on the referendum is required for the referendum to pass.
Who is Missouri American Water?
Missouri American Water is a local water utility that provides safe, clean, reliable and affordable water to 1.7 million Missourians every day. American Water is the largest regulated water utility in the country, and is regulated by the Missouri Public Service Commission.
Is Missouri American Water a local partner?
Missouri American Water is a long-term local partner, not just a service provider operating in the state for over 140 years and regularly partners with local organizations in the communities we serve.
What is being proposed, and why is the district considering it now?
The proposal applies only to the water system operated by PWSD #1 of Stone County; wastewater service is not included. If approved by voters, the district would begin the required regulatory review process to dissolve and transfer the water system assets to Missouri American Water. The district is considering this option in light of significant water loss, limited fire-protection capacity, and aging infrastructure. District leaders estimate that roughly 65% of treated water is currently lost. These challenges can also limit new connections, while recommended improvements suggest that customer rates may need to increase if the district remains independent and funds the needed improvements itself.
When is the referendum?
Election Day is November 3, 2026. Early in-person voting is expected to begin October 20th.
Do I need to do anything, and will my water service change?
No action is needed to keep your service. If the transfer is approved, water keeps flowing as usual and you would simply begin receiving your bill from Missouri American Water. Service would not be interrupted by the transition.
How much would Missouri American Water invest, and when?
Missouri American Water has committed to at least $5 million in capital improvements within five years after closing. Fire protection, main replacement, and reducing water loss would be the highest priorities.
What specific improvements are included to modernize the system?
• Replacing undersized or under-capacity mains and updating valves
• Installing and upgrading the mains needed for fire protection
• Locating where water is being lost and replacing the mains responsible
• Upgrading water-quality and sampling equipment for regulatory compliance
Does the district have adequate fire protection today?
No. The community currently has limited to no fire-flow capacity necessary to respond in the event of a fire. Missouri American Water has prioritized the improvement of fire protection infrastructure including addressing storage concerns and expanding the capacity of mains. Much of the planned capital investment is expected to support fire flow improvements.
How would the proposal address water loss and why is this important?
Roughly 65% of treated water is currently lost to leaks before it reaches customers, which means ratepayers are paying to treat water that never gets used. Missouri American Water would investigate the sources of that loss and target repairs and main replacements improving efficiency, reliability, and available capacity, and reducing wasted cost.
How will the transfer help the environment?
The planned capital improvements that will be made within the first 5 years will improve the environment by reducing the amount of treated water lost through leaks, replacing contributing mains, improving monitoring and sampling, and strengthening regulatory compliance. Missouri American Water would assume responsibility for operating the system in accordance with federal and state drinking-water requirements.
What is the condition of the current system?
The system was built in the late 1960s and early 1970s and needs modernization. The district describes its overall condition as relatively good but identifies significant needs around fire protection, undersized and leaking mains, valves, main-break response, and water loss, needs that are difficult to fund under the current structure. Additionally, the Missouri Department of Natural Resources has acknowledged the district’s high water-loss level, which could contribute to compliance issues, and the district has experienced challenges maintaining certified operators. Missouri American Water would assume operational and regulatory responsibility and use upgraded sampling equipment and continuous monitoring.
Where does the district’s water come from?
The district relies on well water and uses standard treatment from Treatment Well #1, located on James River Road.
What would happen to customer rates at closing?
Customers would move to the Missouri American Water rates in effect at closing. Using 2025 published rates for a residential 5/8-inch meter, a customer using 4,000 gallons per month would pay $55.81 under Missouri American Water’s published rates compared with $58.38 under PWSD #1 of Stone County’s current rate. Missouri American Water has a pending rate case that is under review with the Missouri Public Service Commission. The final rate will be determined through the regulatory review process.
Would rates increase if the proposal does not pass?
Yes. Based on engineering recommendations, the district expects that rates would need to increase if the transaction does not move forward, because substantial resources would still be required for fire protection, main replacement, water-loss reduction, and other needed projects. Ultimately, rates would need to increase, and it is likely that additional debt would be required if the transfer does not get approved.
How often would customers be billed?
Customers are billed monthly today and would continue to receive monthly bills under Missouri American Water. Missouri American Water also provides online account management, paperless billing, automatic-payment options, and 24/7 emergency support.
Would the transaction create additional local tax revenue?
Yes. Missouri American Water would pay property taxes, with portions going to the area taxing districts and schools. This will result in new tax revenue for the community since there are currently no property taxes paid by the district.
How long would the approval process take?
Transferring the system to Missouri American Water is expected to occur approximately one year after a successful referendum. After voter approval, a judge would issue the formal order and the transaction would proceed to the Missouri Public Service Commission for review. Timing is an estimate and may change based on the required legal and regulatory process
