Mission Statement: The mission of the Madison County Regional Utility District is to protect public health and preserve the environment by providing reliable and sustainable wastewater management services to our rural communities, improving the quality of life for our residents.
madisoncountyrud@madisoncounty.in.gov
Madison County is undergoing a process to create a Regional Utility District (RUD) for the purpose of collecting and treating sewage in currently unincorporated areas in Monroe Township. Private septic system failures are occurring, creating a public health risk. The District is being formed to oversee the design, construction and maintenance of a series of pipes and pumps that will safely and efficiently collect and deliver sewage to the Alexandria wastewater treatment plant. A Regional Utility District is formed by petitioning the Indiana Department of Environmental Management (IDEM) for review and consideration prior to district formation. It will be governed by a dedicated District Board, with members appointed by elected officials.
Monroe Township
Madison County
Currently, household sewage in these parts of the county is handled by a combination of old septic tanks and varied types of drainage tiles (pipes). These aged systems are breaking down, and most of the current homeowners’ septic tanks are not designed to current standards. These conditions have led to a situation where, at certain times, raw sewage is discharged across private property, including homeowner lawns, as well as into the nearby Pipe Creek, creating public health hazards. Because water flows downstream, these impacts can extend throughout the watershed, stretching from Pipe Creek all the way to the White River. The existing tiles are degraded such that attempts to clean and maintain them cause blow outs and additional damage. Patching the failure points only provides a temporary solution. This situation has resulted in IDEM bringing enforcement action against the County for violations to the Clean Water Act. Madison County is required to address and fix the current sewage problems through an Agreed Order.
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A variety of site inspection reports, maps, communications with the Indiana Department of Environmental Management, and preliminary engineering documents are included below.
Your can reach us at madisoncountyrud@madisoncounty.in.gov or submit our Feedback Form.
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An informational meeting regarding Madison County’s intent to file a petition with the Indiana Department of Environmental Management to establish a regional utility district will be held on June 18, 2025 at 6 p.m. Click here for full details.
Petition to IDEM to form Regional Utility District
Public Meeting Boards with Notes
Commissioner's Resolution - Formation of a Madison County RUD
Council Resolution - Formation of a Madison County RUD
Preliminary Engineering Report
Monroe Township Township Map
The Scotts and Phillips Additions are served by old, privately-owned onsite wastewater disposal systems (septic systems) that have outlasted their anticipated life expectancy and do not meet current design standards. As a result, the aging infrastructure is failing in multiple places. Many of these failure points occur on private property, but the failures can impact other homeowners as well as public water resources. This situation is likely to continue occurring in the future because of the age and condition of this infrastructure.
Infrastructure failures of this kind present residents with potential exposure to raw sewage in local waterways, and, as is the case for some residents, in their own yards. This exposure can also impact further reaches of the watershed, stretching from Pipe Creek all the way to the White River. Leaking septic tanks and broken tile pipes can also put groundwater quality at risk, as sewage-laden water can travel underground to nearby privately-owned drinking water wells. Failing to address the issue leaves residents in a difficult situation and can result in a significant human health hazard, since such contaminated water contains dangerous bacteria, viruses, and other threats.
While the infrastructure failures that are occurring are associated with private septic systems, the county is stepping in due to the notable pollution resulting from the situation, the associated human health risks, and impending enforcement from the Indiana Department of Environmental Management (IDEM).
The project team is working as quickly as design and public notice processes allow. Unfortunately, the risk of raw sewage in the waterways will remain until construction is complete.
The term ‘onsite waste disposal system’ refers to a privately-owned septic system. You can learn more about how septic systems work here .
We greatly appreciate any information you can share on your existing system. Information can be emailed to MadisonCountyRUD@madisoncounty.in.gov , or you can call (765) 641-9537.
The privately-owned, onsite wastewater disposal (septic) systems in the Scott and Phillips Additions were designed and installed using 1950s-era materials and design standards. The materials had a limited-service life which has now been surpassed, so they have deteriorated to the point that leaks occur in these systems. Additionally, as with all infrastructure, design standards for these systems have changed over time, due to advances in materials and technology and changes in our overall understanding of the water environment. The systems originally installed in these neighborhoods were constructed to meet 1950’s-era standards, which are not consistent with today’s standards.
There are many benefits of the project to residents and the general public, as described below, but it is also important to understand that the county is required to perform this work. In September 2022, the Indiana Department of Environmental Management (IDEM) observed evidence of raw sewage in the creek west of the Scotts Addition and in the area of an apparent broken tile nearby. This raw sewage is believed to be from failing privately-owned septic systems in the area. Because the specific source could not be identified, and the sewage was impacting a waterway, this became a violation of the Clean Water Act, and IDEM placed the responsibility for addressing the situation on the county. As a result, the county entered into an Agreed Order with IDEM in October 2023. The order is a legal binding agreement that sets forth certain corrective actions agreed on by both IDEM and the county to work towards resolving the issue. As part of the required corrective actions, the county is required to pursue formation of a regional utility district and development of a centralized modern sanitary sewer system to serve the neighborhood. Should the county choose not to comply with these requirements, IDEM will take legal action against the county, as outlined in the order.
Providing a new, modern sewer system to transport sewage to a wastewater treatment facility will have multiple benefits to residents and the community. First, it will protect public health in the area by eliminating the potential of raw sewage contamination in the water environment. The waterway and neighborhood areas will be more accessible for safe recreational use, allowing residents to more fully use their properties. Reducing the potential of groundwater contamination also helps protect water quality in nearby private drinking water wells, improving the overall health and wellness of residents in the area. Additionally, the modern sewer system will help improve property values in the neighborhoods by ensuring residents have safe, reliable access to sanitary sewer service without the risk of having to try to replace costly private septic systems without adequate space to do so.
Additionally, creating a regional utility district provides the management structure needed to implement the proposed infrastructure improvements and to ultimately oversee the operation and maintenance of the proposed sewer system. The district formation also provides opportunities to pursue various funding options that are not available to the county, resulting in lower overall project costs. Additionally, the regional utility district board will be appointed by elected officials in the area, providing a level of accountability to customers that may not be available in other scenarios.
Regionally, removing this potential source of contamination in the Pipe Creek watershed will improve the overall quality of the water environment. Failing privately-owned septic systems often contribute to overall impairment in waterways, and the proposed project may help remove a Total Maximum Daily Load use restriction on Pipe Creak by reducing the overall impairment from sewage intrusions. This would allow additional use of waterways in the region, improving the overall quality of life for the community.
If the county does not address the failing privately-owned infrastructure, the state will be forced to take legal action through the agreed order to protect the public. In the worst-case scenario, the state would perform the work itself and pass the cost on to the county, and ultimately the residents impacted, with limited local input. The state could also force the county to legally condemn properties that do not currently have or could not reasonably construct new septic systems that meet current design standards. Additionally, the state can assess additional enforcement fines, including civil penalties or stipulated penalties if the county does not take action to address the situation.
The full suite of engineering solutions were explored to address the situation. Additional information can be found in the Preliminary Engineering Report linked here. Viable alternative solutions include gravity sewers and low pressure sewers. Consideration was also given to the replacement of individual septic systems to meet current standards; however, this solution was found to be cost prohibitive and infeasible on many properties due to parcel size and/or site and soil conditions.
The County is working with the City of Alexandria on an agreement to accept wastewater from the proposed project in Phillips and Scotts Additions. Based on initial discussions with the City, they have indicated that they have the capacity to receive wastewater from the proposed project.
The County has previously discussed the option of the City of Alexandria extending its sewer service to Phillips and Scotts Additions instead of forming a regional utility district. However, the City indicated they were not in a position to take the lead on that work. Additionally, that option would not allow voting residents in the project area to have representation for management of the utility, as they do not vote for City officials. The structure of the proposed Regional Utility District Board allows the voting public to have a say in the composition of the board through their elected officials.
All residents of Monroe Township located outside of incorporated areas (Alexandria and Orestes) will be included in the regional utility district area, but the current project activities will only address issues in the Phillips and Scotts Additions. Alexandria and Orestes residents are already serviced by a sewer utility that provides collection and treatment of sewage.
Despite the name “Madison County Regional Utility District,” the proposed district does not encompass the entire county. The name does allow the district to evaluate needs in other parts of the county in the future if appropriate conditions are met.
The initial boundaries for the Madison County RUD are specified in the petition submitted to IDEM. As noted, the proposed District will include all unincorporated areas of Monroe Township in order to satisfy IDEM’s preference for recognizable, established boundaries and to be consistent with other projects of this kind. District expansion can occur in the future with approval from the District Board and notification to IDEM. Regional Utility District boundaries are not required to be contiguous.
The formation of a regional utility district and proposed sewer project do not set up the neighborhoods for annexation into the City of Alexandria. Forming a new district allows voting residents in the project area to have representation for management of the utility without annexation. The structure of the proposed Regional Utility District Board allows the voting public to have a say in the composition of the board through their elected officials, who appoint the board trustees.
Ultimately, this is a policy decision, and the Madison County Regional Utility Board of Directors will likely retain the authority to dictate connection to its sewer system if property lines are within 300 feet of any new sanitary sewer line. This is consistent with the approach taken by other, approved utility districts and utilities.
State law does allow utilities to approve exemption from connection requirements under certain circumstances. You can learn more about that here .
The Madison County Regional Utility District Board of Directors is independent of the state, county, city, and township government. It is composed of five trustees appointed by the following:
This structure allows the voting public to have a say in the composition of the board through their elected officials. Residency requirements for Board members are detailed in Indiana Code 13-26-4-6 .
[The complete list of powers of the Board is outlined in Indiana Code 13-26-5-2 . Some of the most pertinent powers of the Board include the abilities to charge connection fees and user rates, require connections within 300 feet of the sewer system unless exceptions apply, establish policies and procedures (including a potential waiver process) and adopt or amend bylaws for the administration of the District's affairs.]
The county designated $3.5 million from American Rescue Plan Act (ARPA) funds to pay for engineering design and a portion of the initial infrastructure costs. The county, on behalf of the proposed District, is pursuing additional funding through the Indiana Finance Authority State Revolving Fund program. If awarded, this funding will likely be in the form of low interest and/or subsidized loans.
Once the District is formed and the infrastructure is in operation, outstanding debt will be repaid through funds generated by the district from user rates and connection fees paid by customers. The District Board sets these rates and fees. An engineering report and user rate study are being prepared that will help guide these decisions. Regional utility districts cannot receive revenue through taxes, nor can they form a taxing district.
Regional utility districts cannot receive revenue through taxes, nor can they form a taxing district.
If IDEM approves the petition to form the Regional Utility District, only residents within the Regional Utility District who receive sanitary sewer service will be charged a fee. Residents located within the district area that are not receiving sanitary sewer service would not be charged user fees for sanitary sewer service.
If the county determines it is necessary to move forward with drainage work in the area, there may be assessments associated with this; however, this would be separate from fees associated with the regional utility district.
The agency will now perform a technical review and request additional information if necessary. A public comment period will remain open for 180 days until January 27, 2026, or an alternate date as dictated by IDEM. You can submit comments or questions about the project to the County here. Once the IDEM public comment process opens, a link will be added here to the appropriate comment form or authority.
The remaining dates are subject to change based on coordination with IDEM and IDEM’s internal process.
Construction will occur primarily in Scotts Addition and Phillips Land and Gas Addition. Some work may need to be completed outside of these neighborhoods to connect the new infrastructure to the existing system.
As with any major infrastructure project, construction impacts will include construction crews and equipment in the area, noise, dust, and periodic road closures. As the project development progresses, the design and construction teams will work together to develop plans for minimizing road closures and developing temporary detour routes. More information will be available on this prior to construction beginning.
