An agreement was entered into on September 12, 1961 between the City Commissioners of Dunlap Tennessee and the Gravity Water Company. The Gravity Water Company was represented by Harry Kell, President and Briggs Smith, Representative. Representatives for the City of Dunlap were Haskel Barker - Mayor, George Sims - Commissioner, Thomas Henry Mosley - Commissioner. The total purchase price was $51,299.46, this included all real estate, easements, and possessions, except the Hatfield and Moore Springs tracts.

Recorded in the 1961 and 1962 minutes book, of City meetings, the City issued a bond in the amount of $470,000.00 for construction of the treatment plant and water intake on the Sequatchie River.

Plant Property

On June 29, 1962 the City of Dunlap purchased a parcel of property from William and Cecil Lamb at 27 Cemetery Circle (location of existing treatment plant). The firm of Schmidt Engineering Company was hired to design the treatment plant, raw water intake, and to relocate an existing tank. The referred tank was a 150,000 gallon, welled metal, moved by a dozer to the existing location. Construction was done by C & W Construction Company.

Industrial Park Reservoir

In 1967 the City of Dunlap constructed the infrastructure for the Industrial Park located off Industrial Road. This consisted of water, wastewater, and natural gas services. As for water a 850,000 gallons steel reservoir was constructed northwest of Tram Trail and booster pump station just off Highway 127.

In 1995 this reservoir was repainted and a lead abatement program initiated due to lead primer that had been used in the initial construction.

South Ridge Reservoir

Due to residential growth in 1985 the City of Dunlap constructed a 500,000 gallon steel reservoir to serve the resident of south Dunlap and the ridge top areas. This allowed the elimination of two hydropneumatic pump stations located off Highway 127 south of Dunlap and Hill Drive.

Central Tank

In 1996 the City of Dunlap replaced the original 150,000 gallon tank, with a 1,000,000 gallon concrete reservoir. This reservoir, which was constructed by The Crom Corporation will reserve the needs of the new treatment plant which should begin construction in the year 2000.

2.0 MGD Treatment Plant

In July 2000, the Dunlap Water System purchased 16.25 next to the existing water treatment plant from Mr. & Mrs. Daniel Lamb. Construction of the treatment facility then began with Phase 1, a 500,000 gallon disinfection contact tank built by the Crom Corporation, in fall of 2001. Phase 2, was completed in 2004 with the plant being constructed by W. Rodgers Company.

Blue Sewanee Tank & Pump Station 

The tank and pump station located north of Dunlap was a combined effort between the Pikeville Water System and the Dunlap Water System. The Pikeville System had experienced problems on a number of occasions with their well source and needed an alternate supply. The System had received emergency monies to connect to Dunlap. In the agreement Dunlap received a 1,000,000 gallon tank and pump station along with several miles of main line. Dunlap agreed to provide labor to install the water mains, to reduce the cost and keep the project within budgeted limits. Properties were purchased in December 2001 and February of 2002 to located these system additions. Line construction will be completed in mid 2002 with the Dunlap System meter located in the Pailo Community.

East Valley Extension

In 2006, the Water System and Sequatchie County entered into a mutual agreement to provide water to the East Valley side of the Sequatchie Valley. In the agreement the County would provide the Water System with a payment of $20,000.00 for the next 5 years, this would help to offset debt payments the Water System accumulated and allow water to be provided without establishing another small water utility.
In 2007 the Water System purchased 2 acres of land from Chapel Hill U.M.C. which had received the property as a donation from Thomas Austin. Solicitation for bids to extend water service from the Marion County Line to Kelly Cross Roads on the north end of Sequatchie County, were received. Due to the size of the project engineers knew it would have to be done in phases, and probably require multiple construction companies . Phase 1 came to include work along the west side of the Sequatchie River, then north to East Valley Baptist Church, then south to the Marion County Line. This phase would also include Kell Loop and the construction  of a 1,000,000 gallon tank. In October 2008 the Crom Corporation completed the tank, along with Mayse Construction who had received the bid to do the line work on the west side of the river and north from Herman Hickson Road  to East Valley Baptist Church.