The proposed merger between American Water and Essential Utilities has received approval from the Virginia State Corporation Commission, marking another regulatory milestone as the companies work toward completing the transaction.

Virginia is the first state where both companies operate regulated water and wastewater utilities to approve the merger. The approval follows earlier decisions by the Kentucky Public Service Commission in April and the Public Utilities Commission of Ohio in May. Shareholders of both companies also approved the all-stock transaction earlier this year.

Announced in October 2025, the merger would create a combined utility serving more than 4.7 million water and wastewater customer connections and more than 740,000 natural gas customer connections. The combined company will operate under the American Water name and remain headquartered in Camden, New Jersey.

The companies said the merger remains on track to close by the end of the first quarter of 2027, pending additional regulatory approvals, clearance under the Hart-Scott-Rodino Act and other customary closing conditions.

If completed, the transaction would further consolidate the U.S. water utility sector by combining the nation's largest regulated water and wastewater utility with Essential Utilities' water, wastewater and natural gas operations. American Water currently provides regulated drinking water and wastewater services to approximately 14 million people across 14 states and 18 military installations, while Essential Utilities serves approximately 5.5 million people through its Aqua and Peoples brands across nine states.