EXHIBIT 99.1

      Southwest Water Company Announces Proposed Public Offering
                     of 1.7 Million Common Shares

    LOS ANGELES--(BUSINESS WIRE)--Aug. 16, 2004--Southwest Water
Company (Nasdaq:SWWC) today announced that it intends to offer to the
public 1.7 million shares of its common stock, plus up to an
additional 255,000 shares to cover over-allotments, if any, under its
existing shelf registration statement.
    The managing underwriters for the offering are A.G. Edwards &
Sons, Inc., Janney Montgomery Scott LLC, and J. J. B. Hilliard, W. L.
Lyons, Inc. A copy of the prospectus supplement and the prospectus
related to the offering can be obtained when available by contacting a
local office of one of the managing underwriters or by contacting A.G.
Edwards & Sons, Inc., One North Jefferson, St. Louis, MO 63103.
    This news release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of these
securities in any state in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such state. A registration statement relating
to the shares that the company intends to sell has previously been
filed with, and declared effective by, the Securities and Exchange
Commission.
    Southwest Water Company provides a broad range of services: water
production, treatment and distribution; wastewater collection and
treatment; public works services; utility billing and collection; and
utility infrastructure construction management. The company owns
regulated public utilities and also serves cities, utility districts
and private companies under contract. More than two million people in
35 states from coast to coast depend on Southwest Water for service.

    This document contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements involve risks and uncertainties, as well as assumptions
that, if they prove incorrect or never materialize, could cause the
results to differ materially from those expressed or implied by such
forward-looking statements. More detailed information about risk
factors that may affect the company is contained in the company's
filings with the Securities and Exchange Commission, including the
company's 2003 Annual Report on Form 10-K. The company assumes no
obligation to update these forward-looking statements.

    CONTACT: Southwest Water Company
             Richard J. Shields, 213-929-1800
             www.swwc.com
             or
             PondelWilkinson Inc.
             Cecilia Wilkinson or Robert Jaffe
             310-279-5970 or 310-279-5969
             www.pondel.com