Xenia Rural Water System is trying to hold onto service territory as the Des Moines metro expands. (Photo via Canva) The expansion of Des Moines’ suburbs and nearby communities has provided a rich opportunity for the Xenia Rural Water District to add new, densely clustered customers. The water utility serves about 10,700 customers in parts of 11 counties west and north of Des Moines. That includes those in sparsely populated areas and, more recently, suburban residents. It’s less costly to provide water to thick residential areas than to isolated farmhouses. But the growth of those cities into Xenia’s service area have prompted territorial disputes and two federal lawsuits. “They just assume that as they grow and expand their borders and annex territory that they get the right to serve those customers with all of their own utilities,” said Royce Hammitt, Xenia’s chief executive. “And in fact, that’s not usually the case.” By state law, rural water utilities are generally precluded from providing service within two miles of cities, unless those cities agree to it. But Xenia has used rural development loans from the U.S. Department of Agriculture — and still owes money on them — to install its service […]
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