Davenport, Iowa (February 12, 2010) - Iowa American Water announced today that the application process is now open for its 2010 Environmental Grant Program to support innovative, community-based environmental projects that improve, restore or protect watersheds and community drinking water supplies.

The company will award grants of up to $5,000. The program is designed to support diverse types of activities, such as watershed cleanups, reforestation efforts, biodiversity projects, streamside buffer restoration projects, wellhead protection initiatives and hazardous waste collection efforts.

"The goal of this program is to positively impact watersheds and our drinking water resources," said Randy Moore, president, Iowa American Water. "We encourage municipalities, schools, environmental organizations and civic groups to apply for a grant to support projects that will benefit a watershed in their community."

To qualify, a proposed project must be located within an Iowa American Water service area and address a source water or watershed protection need in the community. All projects will be completed between May 1, 2010 and November 30, 2010. Criteria will be judged on the program innovation for the community, the partnership with other organizations and program sustainability.

In 2009, a total of 25 projects were supported by American Water environmental grants totaling more than $114,000. One of these projects was located in Iowa.

- River Action, Inc. of Davenport received a $3,300 grant to fund the Duck Creek Buffer Program. The program includes planting 30 feet of native grasses and forbs along Duck Creek's main stern and tributaries to improve water quality, provide habitat for wildlife, prevent erosion and sediment delivery, and encourage best stormwater management practices.

Grant information and application forms can be found online at www.iowaamwater.com. Applications must be postmarked by March 22, 2010, and mailed to Lisa Reisen at Iowa American Water, 5201 Grand Avenue, Davenport, Iowa, 52807 or emailed to lisa.reisen@amwater.com.

About Iowa American Water
Iowa American Water, a wholly owned subsidiary of American Water (NYSE: AWK), provides high-quality and reliable water and/or wastewater services to approximately 200,000 people. Founded in 1886, American Water is the largest investor-owned U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs more than 7,000 dedicated professionals who provide drinking water, wastewater and other related services to approximately 15 million people in 32 states and Ontario, Canada. More information can be found by visiting www.amwater.com


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