SAN DIEGO, California (December 16, 1998) – Western Water Company (NASDAQ:WWTR), announced today that Larry W. Rowe, 55, will join the Company as Vice President-Water Management on January 4, 1999. On Monday, December 14, Mr. Rowe announced his decision to leave his current position as General Manager/District Engineer of the Mojave Water Agency effective at the end of this month.

“We are delighted to have Larry join Western Water Company,” said Michael George, President and Chief Executive Officer. “His broad professional expertise in the water industry will add significantly to our ability to identify, develop and manage water assets for the Company. In his years as one of California’s preeminent water engineers, Larry has demonstrated both vision for the future and the ability to design and execute complex water management solutions. As Western Water Company developed its presence in the Mojave Basin, we came to respect Larry’s professional skill and his uncommon insight.”

“As a professional in the water industry, I look forward to contributing to the development of a viable water market in the Western United States,” said Mr. Rowe. “I decided to join Western Water Company when it became clear to me that this Company is positioned to bring incremental water resources into the market that are cost-competitive, environmentally sensitive and flexibly suited to customer demands. The water business is undergoing profound fundamental change and Western Water Company is helping to make that change responsive to emerging market forces.”

At Western Water Company, Mr. Rowe will have primary responsibility for developing conveyance and storage projects for the Company and its customers. He will also assist with implementing a variety of other development and delivery projects. Mr. Rowe will report to Mr. George.

For the past eight years, Mr. Rowe has been the chief executive of the Mojave Water Agency, a public agency in San Bernardino County and one of the 29 contractors for the State Water Project. In that role, he supervised construction of the Morongo Basin Pipeline and the ongoing construction of the Mojave River Pipeline. During his tenure, MWA was appointed the initial Watermaster for the Mojave River Basin, the most recently adjudicated of California’s groundwater basins. Thus, Mr. Rowe has gained critical experience managing imported water as well as groundwater resources, experience becoming more critical as the Western states move to conjunctive use of surface and groundwater supplies.

Prior to joining MWA, Mr. Rowe served for seven years as General Manager/District Engineer for the East Valley Water District. He is a California Registered Professional Engineer and a graduate of the California State Polytechnic University. He is the author of a number of professional publications in the field of water management and a member of a variety of professional associations.

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 throughout the West.