DONAHUE, Iowa — Iowa American Water purchased the city of Donahue's water and wastewater systems for $1.75 million on Thursday.
The subsidiary of American Water plans to invest in the city's systems to address infrastructure issues and upgrade safety and security systems. It will also invest in addressing permit compliance and improve operational efficiencies, according to a press release.
The purchase of Donahue's 140 water and 118 wastewater customers was approved by the Iowa Utilities Board in Des Moines in July.
Ken Schoenhaler, mayor of Donahue, said that American Water has been operating the city's systems for three years.
"Donahue will benefit from capital investments which will allow the community an opportunity for economic development and growth," said Schoenhaler. "I'm confident that partnering with Iowa American Water is the best, long-term solution for our residents and community."
Customers in Donahue will receive a letter in the mail with more information about the water and wastewater services available. They can also visit Iowa American Water's website.
