Eagle Creek Water Plan Sparks Council Debate

The Indianapolis-Marion County City-County Council is actively scrutinizing a controversial state plan to ship water from Eagle Creek Reservoir to the LEAP district in Boone County. Concerns center on the potential impact of this billion-dollar project on the reservoir's ecological health, particularly regarding wastewater discharge. Officials and advocates questioned the environmental review's rigor and transparency during a lengthy Parks and Recreation Committee meeting on February 5, 2026.

The proposed plan involves Lebanon Utilities transporting up to 25 million gallons of water daily from Central Indiana sources, including Eagle Creek. This water would be sold to LEAP district tenants like Meta and Eli Lilly and Co. Lebanon Utilities would then treat the wastewater and discharge it back into Eagle Creek, approximately 16 miles southeast of Lebanon. This approach was spearheaded by the Indiana Economic Development Corporation and financed by the Indiana Finance Authority.

Councilors and residents expressed unease about Lebanon Utilities opting for Eagle Creek as a discharge site, questioning the cost-saving aspect over a closed-loop system. Lebanon Utilities management stated a closed-loop system would be prohibitively expensive. Environmental lawyers raised flags about potential loopholes in regulations that might allow bypassing water quality standards to support economic development, especially with pharmaceutical companies like Eli Lilly investing heavily in the area.

Despite some relief from Lebanon Utilities regarding the finalized discharge location not being set, significant questions about regulatory compliance and contaminant removal persist. While the city council has limited direct authority over the project, they aim to influence policy and encourage stakeholder engagement to mitigate concerns and refine the plan's rough edges.