The Town maintains its own water and wastewater utility systems. There is a water treatment plant just west of town at the foot of Cahas Mountain which sends mountain spring water into town. A pair of ponds then treats wastewater and sends clean water into Maggodee Creek, where it flows on to Smith Mountain Lake and eventually the Albemarle Sound in North Carolina.

Town water quality is excellent and has been recognized by the Virginia Department of Environmental Quality. The Town's water and sewer rates are also among the lowest in the region. Households benefit from lower utility rates, as do businesses that use larger amounts of water, such as restaurants.

The Western Virginia Water Authority operates and maintains the water and wastewater systems for the Town.