Consolidation aids water business

HARTFORD, Conn. (AP) — Independent water systems serving hundreds of communities have struggled to keep up with demand in western Connecticut as more and more people who work in New York City move into the area.

A large water company has responded by buying up smaller companies that serve rural communities. Some of the small companies welcomed the move.

The CEO of Aquarion Water Co. says it has acquired 57 water systems in Connecticut in the past 18 months, many of them in the western part of the state.

In many cases, smaller companies are looking to leave the business, which requires large investments for pumping, storage, treatment and other equipment.

An official with the state Public Utilities Regulatory Authority says the agency has invited larger companies to consider buying smaller businesses that have been looking for the exit.