The Eastsound Water District was incorporated in Washington State in 1938. Some years later, in the early 1950’s the Eastsound Water Users Association was created and the Eastsound Water District agreed to license its wells and water rights, the only source of municipal water in Eastsound, to the new organization. The Water District then curtailed its own distribution of the water resource. The Eastsound Sewer and Water District has retained ownership of its well property and senior municipal water rights for the Eastsound area and continues to license them to the Eastsound Water Users Association.
In the mid 1970’s the original Eastsound Water District was resurrected in order to provide an entity with the authority to provide sewer service in the Eastsound area. The Eastsound Water District expanded its authority as a municipal utility under RCW Title 56, the Washington State law governing sewer districts at that time. The Eastsound Community approved by vote to create Utility Local Improvement District #1 to provide sewer service to a portion of the Eastsound area. The Eastsound Wastewater Treatment Facility began operation in 1980. During the following thirty years, the District has doubled its treatment capacity to .16 million gallons per day (mgd) and has continued an orderly development of sewer main line extensions inside its approved service area.
In the mid 1980’s the District performed a feasibility study on providing sewer service to the Orcas Village area primarily around the Washington State Ferries, Orcas Ferry Terminal. The Department of Ecology and the Department of Transportation both took part in the development of plans in order to provide sewer service to Orcas Village. The District was the principle administrator for the project and, with grants from the Department of Ecology and the Department of Transportation, entered into contracts with the individual property owners to provide sewer service to the Orcas Village area. The District continues to administrate and operate the Orcas Village Sewer System. The treatment plant and collection system was built and went on-line in 1989. The system currently serves approximately 30 customers with a total of 67 equivalent residential units (ERU’s). The treatment plant is approximately one-third of its total design capacity so there is sufficient capacity to serve the area for the current planning period.
The Eastsound Water District was incorporated in Washington State in 1938. Some years later, in the early 1950’s the Eastsound Water Users Association was created and the Eastsound Water District agreed to license its wells and water rights, the only source of municipal water in Eastsound, to the new organization. The Water District then curtailed its own distribution of the water resource. The Eastsound Sewer and Water District has retained ownership of its well property and senior municipal water rights for the Eastsound area and continues to license them to the Eastsound Water Users Association. 
