American Water Works Company is a regulated water and wastewater utility serving customers across multiple states, the largest publicly traded water utility in the United States. As a regulated utility, its earnings are tied to a rate of return approved by state regulators on the capital it invests in water treatment and distribution infrastructure, providing predictable earnings in exchange for accepting limits on customer rates. Water utility infrastructure spending tends to be relatively stable and non-discretionary, since water treatment and distribution systems require ongoing maintenance and periodic upgrades regardless of broader economic cycles. American Water's growth strategy centers on both organic rate base expansion through infrastructure investment and acquisitions of smaller municipal water systems, consolidating a historically fragmented industry of many small, separately operated water utilities across the country.