Investor-Owned Utilities in Water: Market Share, Trends, and Company Rankings

27 May 2025
In-Depth Analysis / 40 pages
Available with corporate subscription

The U.S. water and wastewater utility landscape is heavily fragmented, comprising 48,858 community water systems (CWSs) that serve an estimated 318.8 million people and 23,968 wastewater treatment facilities serving an estimated 267.1 million people. Within this landscape, an evolving roster of investor-owned utilities (IOUs) is reshaping the market by establishing regional and national positions (regulated and unregulated) through mergers and acquisitions (M&A) and organic growth.

The leading IOUs, which include 20 publicly traded, private equity-backed, and privately owned companies, currently serve approximately 5% of the U.S. population. Notably, an estimated 87% of these utilities’ assets serve populations of fewer than 3,300 people.

As city managers and utility leaders confront increasing challenges related to workforce constraints, regulatory issues (e.g., per and polyfluoroalkyl substances [PFAS]), and mounting capital investment needs, IOUs offer an alternative approach for managing critical water and sewer infrastructure. Their strategies involve taking on the financial and operational responsibilities of water and wastewater assets through M&A, which in some states is bolstered by favorable policies like fair market value (FMV) legislation.

This market Insight Report examines the state of private participation in the regulated water and wastewater utility sector, profiling and analyzing market share among the 20 leading IOUs while highlighting key drivers and trends to watch.

Table of Contents

Section 1—IOU Market Overview

  • U.S. Water and Wastewater Utility Landscape
  • Consolidation Drivers
  • Timeline of Key Events
  • Leaders in Connections Added
  • IOU Rate Cases
  • Competitive Landscape
  • Capital Expenditures
  • Operating Expenses

Section 2—Market Share and Company Profiles

  • Top IOUs by Total Connections
  • Leading IOUs by State
  • IOU Ranking and Market Share
  • American States Water Company
  • American Water Works Company
  • Arizona Water Company
  • Artesian Water Company
  • California Water Service Group
  • Central States Water Resources
  • EPCOR
  • Essential Utilities (Aqua)
  • Eversource Energy (Aquarion Water Company)
  • Global Water Resources
  • H2O America (formerly SJW Group)
  • JW Water Holdings
  • Liberty Utilities
  • Middlesex Water Company
  • Nexus Water Group
  • NW Natural
  • San Gabriel Valley Water Company
  • Utility Holdings, Inc.
  • Veolia North America
  • York Water Company

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