EXHIBIT 99.1

            Southwest Water Acquires Mississippi Utility

    LOS ANGELES--(BUSINESS WIRE)--March 1, 2007--Southwest Water
Company (NASDAQ:SWWC) today announced that it has purchased North
Mississippi Utility Co., Inc. which is comprised of five water and
wastewater systems that serve approximately 800 residents in Desoto
County, a growing area just south of Memphis.

    "This transaction augments our existing contract services
operations in northern Mississippi and dovetails with our strategy of
expanding into geographic markets with high population growth rates,"
said Mark A. Swatek, chief executive officer and chairman of Southwest
Water. "Our contract services division continues to complement the
utilities side of our business by, among other things, serving as an
excellent catalyst with regard to acquisition opportunities."

    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 website: www.swwc.com.

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