Southwest Water Company (NASDAQ: SWWC [1]) today announced that it has acquired Diamond Water Company and Water Services, a company holding 14 water systems that serve approximately 7,500 residents near San Antonio, Texas.

“This acquisition extends our footprint in the high growth area around San Antonio,” said Mark A. Swatek, chief executive officer and chairman of Southwest Water. “We look forward to serving our new customers in this important market.”

Southwest Water provides services for as many as two million people across 10 states. It provides a range of services including water production, treatment and distribution; wastewater collection and treatment; utility billing and collection; utility infrastructure construction management; and public works services.

The company owns regulated public utilities and also serves cities, utility districts and private companies under contract.

Southwest has more than doubled its revenues since 2001, booking $224 million in 2006.

Industry observers predict the coming years will be marked by significant consolidation in the water industry.