In 2002, the Indianapolis Water Company (IWC) was put up for sale. With the sale of the company to Veolia, citizens hoped the deal would at least mean a solution to a summer algae problem.  But they had not seen anything yet.

Since 2002, Indianapolis residents have seen a range of negative effects of water privatization. On May 29, 2006, the Los Angeles Times reported that

“Within the first year, customer complaints nearly tripled and the company admitted mailing more than 15,000 incorrect bills. Inadequate maintenance caused hundreds of fire hydrants to freeze, hampering efforts to put out fires that consumed a church and other buildings.”

Veolia bought out some of the most experienced workers at IWC. Remaining employees saw their benefits slashed, including healthcare and pension. Lawsuits have been brought against Veolia concerning the treatment of workers.

Over one million people receiving their water from Veolia in Indianapolis were put on a ‘boil alert’ in 2005 after a company employee entered a wrong code into a computer.  This meant that before water could be safely used, it needed to be boiled. As a result, schools and businesses shut down, and hotels and restaurants were forced to serve only bottled water.

In October 2005, four Veolia employees were subpoenaed by a federal grand jury as part of an investigation into allegations that water-quality reports were falsified. The probe began amid accusations by Indianapolis City-County Council members that Veolia’s local subsidiary has cut back on employees, water testing, purification chemicals and maintenance. Some even allege the corporation has cooked its books in order to collect financial incentives.

With incident after incident coming to light, residents and council members alike are fed up with the lack of service. The privatization deal, once revered as a showcase for Veolia, has sprung some major leaks.