City of Derby

History of the Water Department

The El Paso Water Company was formed in the 1950s to serve the residents of Derby. Using water from wells located west of the Arkansas River, the Water Company first obtained official water rights in 1954. Additional water rights were acquired over time, bringing the total amount of water pumped by the El Paso Water Company to 700,000 million gallons annually.

Originally, the El Paso Water Company was owned by a group of stockholders who invested their own money into the business. The money was used to construct the infrastructure needed to distribute water to homes and businesses. Each stockholder received annual dividends from the revenues generated through the sale of water to Derby customers.

In 1999, the El Paso Water Company was bought out by the City of Derby. The City purchased all shares of stock, and the Derby City Council became the Water Company’s Board of Directors. This move was important because it meant the Company was no longer in business to generate profits for stockholders. Derby City Council members would be able to ensure that revenues from water sales would be just enough to cover expenses, not to provide income to investors.

Currently, the El Paso Water Company still operates as an independent company because of IRS regulations. In the future, the El Paso Water Company will likely be merged into the City organization; depending on IRS rulings, this could take a number of years.

The El Paso Water Company Board of Directors meets regularly on the fourth Tuesday of each month. The meeting begins after the regular Derby City Council Meeting has adjourned.

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