Exhibit 99.1

                     American States Water Company
Announces Court of Appeal Order in Affirming Dismissal of Court Cases


    SAN DIMAS, Calif.--(BUSINESS WIRE)--Aug. 29, 2007--American States
Water Company (NYSE:AWR) is pleased to announce that on August 24,
2007, the First Appellate District of the California Court of Appeal
affirmed the trial court's dismissal of cases involving approximately
2,000 plaintiffs in Los Angeles. The Court held that the trial court
properly applied the California Supreme Court's holding in the
landmark case of Hartwell v. Superior Court, in dismissing water
quality related lawsuits against water utilities regulated by the
California Public Utilities Commission ("CPUC"), including Golden
State Water Company ("GSWC") a wholly-owned subsidiary of AWR.

    In 1997, GSWC was named as a defendant in nineteen lawsuits
alleging that GSWC and other water utilities delivered unsafe water to
their customers in the San Gabriel Valley and Pomona Valley areas of
Los Angeles County. Plaintiffs in these actions sought damages,
including general, special, and punitive damages, as well as
attorney's fees on certain causes of action, costs of suit, and other
unspecified relief.

    On August 4, 2004, the trial court dismissed GSWC from all
nineteen cases. The trial court found GSWC did not violate established
water quality standards and dismissed the cases after allowing
reasonable time and opportunity for the plaintiffs to prove otherwise.
GSWC has long asserted that it provides water within the standards
established by the CPUC in cooperation with the health authorities. In
September 2004, the plaintiffs filed an appeal to the trial court's
dismissal of GSWC. The Court of Appeal was to determine whether the
trial court properly applied the Supreme Court's holding in the case.
Argument in the Court of Appeal was held before the First Appellate
District on June 20, 2007. On August 24, 2007, the Court of Appeal, in
an opinion certified for publication, unanimously upheld the trial
court's dismissal of the lawsuits against regulated water utilities,
including GSWC.

    American States Water Company is the parent of Golden State Water
Company, American States Utility Services, Inc. and Chaparral City
Water Company. Through its subsidiaries, AWR provides water service to
1 out of 30 Californians located within 75 communities throughout 10
counties in Northern, Coastal and Southern California (approximately
255,000 customers) and to over 13,000 customers in the city of
Fountain Hills, Arizona, and portions of Scottsdale, Arizona. The
Company also distributes electricity to over 23,000 customers in the
Big Bear recreational area of California. Through its non-regulated
subsidiary, American States Utility Services, Inc., the Company
contracts with the U.S. Government and private entities to provide
various services, including water marketing and operation and
maintenance of water and wastewater systems.


    CONTACT: American States Water Company
             Robert J. Sprowls
             Senior Vice President, Chief Financial Officer,
             Treasurer and Corporate Secretary
             Telephone: (909) 394-3600, ext. 647