SAN DIEGO, CA. (September 24, 1998) – Western Water Company (NASDAQ:WWTR) announced today that a Water Sale Agreement between Western Water Company and the City of Inglewood, CA. was approved today by the Inglewood City Council. The Agreement calls for the City to purchase 5,950 acre-feet of water per year from the Company for five years. The price for the water will start at $200 per acre-foot per year, and will escalate under the terms of the Agreement over the five-year period.

“Western Water Company is pleased to have the City of Inglewood as a customer,” said Michael Patrick George, President and CEO of Western Water Company. He added, “this water sale is expected to be the prototype for other California cities with undervalued groundwater rights. Under the Agreement, Inglewood arranged a long-term secure source of local high quality water at an attractive price.”

At the Company’s Annual Meeting last week in Los Angeles, Mr. George explained the Company’s strategy of completing such transactions to invigorate the developing water market, establish pricing levels for wholesale water, and resolve issues related to regional market access. The Inglewood transaction also reduces the City’s reliance on expensive imported water and benefits the state’s environment, according to Mr. George.

Under the Agreement with Inglewood, which City officials have been authorized to sign on September 30, 1998, the City will take water using its existing facilities from supplies owned or controlled by the Company in the West Coast Basin, which underlies the City. The City will be responsible for costs of pumping the water as well as treating and delivering the water to its customers.

Western Water Company is a leading water resource company in the wholesale, non-regulated water market in the Western United States. Its principal activities include the acquisition, development and marketing of water supplies in key market areas throughout the semi-arid southwestern part of the United States.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Western Water Company’s business which are not historical facts are “forward-looking statements” that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in the Company’s Annual Report or Form 10-K for the most recently ended fiscal year.