Water System Improvement Project

Rebuilding the system, end to end.

A once-in-a-generation, $12.66 million upgrade to every part of REO Water — the plant that treats your water, the tower that stores it, and the mains that carry it home.

Why now

Our system earned its retirement.

Parts of REO Water’s system have served for more than half a century. One aeration and filtration unit at the plant is over 50 years old. Our oldest storage tank, built in 1965, reached the end of its useful life. And more than 22 of our roughly 116 miles of mains are undersized 1″ and 2″ lines.

This project replaces or renews all of it: the treatment plant rehabilitated, the old tank replaced with a tower four times its size, and about 37 miles of mains replaced, upsized or reinforced.

The REO Water Board would like to apologize for the inconvenience experienced and thank our members for their continued patience and understanding as we undertake significant improvements to our water system.

— The REO Water Board
By the numbers

What $12.66M is buying.

200,000gallons — new water tower capacity, four times the old 50,000-gallon tank
260–300gallons per minute of plant output, up from 150 gpm
37 milesof distribution mains being replaced, upsized or reinforced
$12.66MUSDA Rural Development investment at just 1.125% interest
Progress

Where things stand.

February 1, 2026

New water tower in service

Located off CR 350 W between SR 66 and CR 200 N — 200,000 gallons of storage, replacing the 50,000-gallon tank that had served since 1965.

April 30, 2026

Treatment plant upgrades complete

Plant output rises from 150 gallons per minute to 260–300 gpm, with the aging aeration and filtration equipment replaced.

April 30, 2026

Distribution system work complete

Roughly 37 of our 116 miles of mains replaced, upsized or reinforced — including more than 22 miles of undersized 1″ and 2″ lines.

Funding & rates

Paid for the responsible way.

The project is funded by a low-interest (1.125%) loan of approximately $12.66 million from the United States Department of Agriculture — Rural Development, keeping financing costs to a minimum for our members.

To meet the USDA’s loan requirements, rates were adjusted beginning with a 20% increase starting with water used in January 2021. As a not-for-profit, REO Water only ever charges what the system needs.

Questions about the project?

Contact Steve Daming at (812) 686-1005, or email us at reowater@psci.net. Construction updates are also announced through REACH Alert.

Visit us3067 W State Road 66, Rockport, IN 47635
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