Exhibit 99.1

               Southwest Water Declares Cash Dividends

    LOS ANGELES--(BUSINESS WIRE)--Aug. 18, 2006--Southwest Water
Company (NASDAQ:SWWC) today announced quarterly cash dividends of
$0.0524 per share of common stock and $0.65625 per share of Series A
preferred stock. The dividends are payable on October 20, 2006, to
stockholders of record as of September 30, 2006.
    Southwest Water Company provides a broad range of services
including water production, treatment and distribution; wastewater
collection and treatment; utility billing and collection; utility
infrastructure construction management; and public works services. The
company owns regulated public utilities and also serves cities,
utility districts and private companies under contract. More than two
million people from coast to coast depend on Southwest Water for
high-quality, reliable service. Additional information may be found on
the company's Web site: www.swwc.com.

    CONTACT: Southwest Water Company
             DeLise Keim, 213-929-1846
             www.swwc.com
             or
             PondelWilkinson Inc.
             Cecilia Wilkinson or Robert Jaffe
             310-279-5970 or 310-279-5969
             www.pondel.com