MUNCIE, IN — When Seymour, Indiana, officials broke ground this summer on a $50 million state-of-the-art water treatment facility, it marked the beginning of a new era for the city’s drinking water.

Seymour, Indiana, is building a new $50 million water treatment facility to replace its century-old plant. Muncie is currently spending $200 million to separate its aging combined sewer and stormwater ...