Market Overview

Aqua America Says Amended Illinois Fair Market Value Legislation a Continued Benefit to Utility Customers

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Aqua America Inc. (NYSE:WTR) today stated that amended legislation
signed into law by Governor Bruce Rauner will continue to allow
companies like Aqua to pay a fair market value for water and wastewater
systems, benefitting local governments, customers, and the environment.

"Municipal officials in Illinois, like their peers throughout the
country, understand the important benefits of regionalizing water and
wastewater systems. They also understand that the proceeds, from the
sale of a water system, could allow them to pursue meaningful and needed
local projects and initiatives," said Aqua America Chairman and CEO
Christopher Franklin. "With similar legislation recently enacted in
North Carolina, and our recently completed Village of Manteno wastewater
system acquisition in Illinois, we are seeing continued momentum in
reaching agreements with municipal systems. The fair market value
legislation is allowing us to offer important solutions to
municipalities."

Prior to the 2013 Illinois' Public Utilities Act legislation, utilities
were often limited to original cost methodology, which only allowed
adding the depreciated original cost of acquired systems into their rate
base and served as a regulatory barrier to the sale of water and
wastewater systems. With the extension of this legislation, Aqua and
other regulated utilities can pay fair market value for utility systems
and leverage their compliance expertise, purchasing power and
operational efficiencies to benefit local systems' infrastructure and
service.

Because of fair market value legislation, since 2013, Aqua has invested
nearly $100 million in Illinois, both through proceeds on transactions
to help communities with other priorities, and through capital
investment into the newly-acquired systems.

"This amended legislation reaffirms the benefits that fair market value
transactions can provide," said Aqua Illinois President Craig
Blanchette. "We will continue our focus on strengthening water and
wastewater systems for communities throughout Illinois, improving
service, protecting the environment, and increasing customer
satisfaction."

About Aqua America

Aqua America is one of the largest U.S.-based, publicly traded water
utilities and serves nearly 3 million people in Pennsylvania, Ohio,
North Carolina, Illinois, Texas, New Jersey, Indiana and Virginia. Aqua
America is listed on the New York Stock Exchange under the ticker symbol
WTR. Visit AquaAmerica.com
for more information, or follow Aqua on Facebook at
facebook.com/MyAquaAmerica and on Twitter at @MyAquaAmerica.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including, among
others: that the legislation may result in municipalities selling their
water and/or wastewater systems. There are important factors that could
cause actual results to differ materially from those expressed or
implied by such forward-looking statements including: general economic
business conditions; the company's ability to leverage its compliance
expertise, purchasing power, and operational experience; the company's
ability to fund needed infrastructure; changes in regulations or
regulatory treatment; availability and access to capital; the cost of
capital; disruptions in the credit markets; and other factors discussed
in our Annual Report on Form 10-K and our Quarterly Report on Form 10-Q,
which are filed with the Securities and Exchange Commission. For more
information regarding risks and uncertainties associated with Aqua
America's business, please refer to Aqua America's annual, quarterly and
other SEC filings. Aqua America is not under any obligation—and
expressly disclaims any such obligation—to update or alter its
forward-looking statements whether as a result of new information,
future events or otherwise.

WTRG

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