Illinois American Water Acquires Madison’s Wastewater System
for $3M – Metro East Utility Consolidation Continues Amid Infrastructure Challenges

GraniteCityGossip.com, October 1, 2025

In a move that continues reshaping water and wastewater services across the Metro East, the City of Madison has sold its wastewater system to Illinois American Water for $3 million. The acquisition adds approximately 1,500 customers to the company’s growing regional network and marks another chapter in the shift toward privatized utility management.

Illinois American Water, which also owns Granite City’s wastewater system following an $86.25 million purchase in 2024, plans to invest $9.1 million into Madison’s infrastructure over the next five years. Planned upgrades include improvements to the collection systems, lift stations, and enhanced security and control systems.

While the company touts its expertise and long-standing service in the region, over 125 years in Madison and the Metro East, residents will see a change in their monthly bills. The average wastewater charge for customers using 3,500 gallons per month will rise from approximately $67 to $76.

The Illinois Commerce Commission approved the sale on September 18, joining a growing list of municipalities, including Alton and the Metro East Sanitary District, that have opted to sell their systems in recent years. Since 2013, Illinois American has added more than 85,000 drinking and wastewater customers in the region.

As infrastructure costs climb and municipal budgets tighten, many cities are weighing the trade-offs between public control and private investment. Critics argue that rate hikes often follow these sales, while supporters point to long-term stability and professional management.

For Madison residents, the transition is underway. For Granite City and neighboring communities, the trend raises important questions about transparency, affordability, and the future of local utility governance.