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The IUC regulates the rates and services of public utilities furnishing water, sanitary sewage, or storm water drainage by piped distribution or collection system to the public for compensation.

As a result, the IUC regulates the rates and service of one investor-owned water utility, Iowa-American Water Company.

The IUC does not regulate municipally owned waterworks or rural water districts. Governance of municipal utilities and rural water districts varies among communities. Customers unable to resolve issues with a municipally owned or rural water utility staff should escalate the complaint to the governing body for that water utility.