Terrace Park is splitting from Indian Hill Water Works after more than seven decades, a move that will reshape water service for both villages and force Indian Hill to retool its plan for meeting a federal drinking-water deadline.

Terrace Park council held a First Reading on Oct. 26 of an ordinance to begin transitioning the village's water service to Greater Cincinnati Water Works (GCWW), according to the Village of Indian Hill. Indian Hill responded by delivering a formal one-year notice to terminate its current contract with Terrace Park.

Indian Hill said the termination notice is tied to a federal timeline. With Terrace Park's roughly 833 accounts expected to leave, Indian Hill must submit a revised General Plan to the Ohio EPA for a smaller, less expensive facility to remove PFAS, a class of synthetic chemicals found in drinking water. The EPA has set an April 2029 compliance deadline.

Why Terrace Park wants out

The switch has been months in the making. Terrace Park Mayor Tom Tepe told a June 23 Public Works Committee meeting that the village wanted to stop owning and managing its aging water lines, according to committee meeting minutes. Terrace Park's water lines are more than 60 years old.

Indian Hill Water Works (IHWW) told Terrace Park the lines would need upgrades before IHWW would take them over. GCWW offered to assume the system as-is.

Council member Pax Lindell, who chairs the Public Works Committee, laid out the tradeoffs at an Aug. 11 council meeting. Staying with IHWW would mean lower short-term costs and less disruption. But the village would keep responsibility for aging pipes, face continued rate increases and carry uncertainty around lead service lines and future capital costs.

GCWW's proposal carries higher initial costs and major construction. In return, GCWW would take on long-term infrastructure responsibility, replace water mains, install a dual-feed system and remove an estimated 200 to 300 lead service lines.

$31.6 million infrastructure plan

GCWW's proposal calls for an estimated $31.6 million in infrastructure work in Terrace Park, according to a GCWW presentation handout updated in October 2026. That includes $8.1 million for 14,800 feet of new connecting water mains, replacement of 5 to 10 miles of existing distribution lines, new meters for all accounts and lead service line removal over 15 years.

To pay for it, GCWW proposed a 30-year infrastructure surcharge equal to 92% of the usage charge, or $4.44 per hundred cubic feet per month. That surcharge drops to zero at the end of the 30-year term, and all funds collected would go exclusively to Terrace Park improvements, according to the GCWW proposal materials reviewed at the June 23 committee meeting.

Rate history also factored into the decision. Terrace Park's water rates under IHWW grew a cumulative 90.1% between 2017 and 2026, averaging 7.4% per year, according to the GCWW proposal. GCWW's rates over the same period grew 54.8% cumulatively, averaging 4.5% per year. Those figures come from GCWW's own proposal to Terrace Park.

Resident engineer backed the switch

Matt Kallevant, a Terrace Park resident and water engineering project manager with Black & Veatch, attended the June 23 committee meeting and said switching to GCWW "makes perfect sense and is all around a safer source," according to the committee minutes. Kallevant raised concerns about rate volatility under IHWW and the utility's PFAS removal plans.

What happens next

Indian Hill said it will continue providing water to Terrace Park on a mutually acceptable basis until the transition to GCWW is complete. The village said it will coordinate with Terrace Park and GCWW on operational responsibilities, infrastructure details and timelines.

Indian Hill's stated priority is ensuring the transition happens "with minimal disruption and no unnecessary impact on Indian Hill water customers," according to a separate village FAQ page.

The Oct. 26 action was a First Reading. The ordinance must still complete Terrace Park's legislative process before the transition is final. Terrace Park is not the only IHWW customer exploring a switch. Madeira's city council voted unanimously in February 2025 to begin formal negotiations with GCWW for the eastern portion of its water service, according to Madeira council minutes.