In case you missed it, the first installment of this two-part story can be found here: History of the Winchester Waterworks, part one.
In 1890, the city awarded a 25-year franchise to Wheeler & Parks to supply water for the community. In 1904, with the company facing bankruptcy, William Wheeler purchased their assets for $10,000 and deeded the company to the Winchester Water Works Company.
The city addressed consumer complaints about water rates by attempting to set its own rates. The company sued, and the case eventually ended up at the US Supreme Court. Smith Hays argued for Winchester, and Beverly Jouett for the Water Works. The 1920 decision in Winchester v. Winchester Water Works Company ruled that the city had no statutory authority to set rates for its franchisee.
In 1921, Winchester renewed the Water Works franchise for an additional 20 years and finally secured its line to the river. Griping continued unabated, however, and in 1932 the city began negotiations with the then-owner, Chandler & Company of New York, to purchase the waterworks.

Talks of this sort continued until 1945, when the city issued revenue bonds to purchase the waterworks for $544,834 from General Water, Gas, and Electric of New Jersey. A local ordinance placed “direction and management under a three-man water commission”—the Winchester Municipal Utilities Commission. The city appointed James B. Allen, L. L. Harrod, and Jack Hodgkin as the first commissioners.
With the change in ownership came a change in attitude, as suggested by this statement in the Winchester Sun:
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“Winchester’s water supply system, considered among Kentucky’s best for a small community, has provided an adequate water supply since the installation of the pumps [at the Kentucky River] in 1922.”
In 1958, the utilities commission ordered a halt to the extension of lines beyond city limits. This led to the formation of water districts to install rural water lines and obtain water from the city. These were Clark County Water District No. 1 in 1961 (succeeded by the Boonesboro Water Association in 1968) and East Clark County Water District in 1967. The city still provides water for resale to the East Clark County Water District.

In 1979, the Corps of Engineers determined that the two reservoir dams, dating back to 1891 and 1905, were unsafe, and the Kentucky Division of Water ordered the dams to be replaced. In 1985, Governor Martha Layne Collins was on hand to dedicate the new $4.5 million reservoir dam. The 65-foot-high dam across the North Fork of Lower Howard’s Creek impounded a 90-acre reservoir. The plan called for the reservoir to serve as Winchester’s primary supply of water for the next fifty years. The expanded reservoir also reduced the need for pumping water from the Kentucky River, which was much more expensive.
Industrial development eventually drove the need for an even greater capacity to deliver water. This led to the construction of the Lower Howard’s Creek Water Treatment Plant on Boonesboro Road, which went online in 2021. The $20 million treatment plant was designed to deliver up to nine million gallons of water per day. The raw water supply comes from Pool No. 10 of the Kentucky River. Also in 2021, the Kentucky River Authority completed an upgrade project at Dam No. 10.
The modern Winchester Municipal Utilities (more commonly referred to as simply “WMU”) is a significantly larger agency. With 85 budgeted positions, today’s WMU is responsible not only for our water supply but also for the wastewater system (sanitary sewers) and solid waste system (garbage pickup and transfer station).
