8-K

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549

FORM 8-KCURRENT REPORTPURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934Date of report (Date of earliest event reported): January 29, 2009

SouthWest Water Company(Exact Name of Registrant as Specified in Its Charter)

Delaware	0-8176	95-1840947
(State of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

One Wilshire Building
624 South Grand Avenue, Suite 2900
Los Angeles, CA	90017-3782
(Address of principal executive offices)	(Zip Code)

(213) 929-1800(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report date)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01     Other Events

On January 29, 2009 a news release was issued announcing that SouthWest Water Company is to receive $60 million in settlement of New Mexico condemnation proceedings.

The information contained in the news release is incorporated herein by reference and furnished as Exhibit 99.1.

Item 9.01     Financial Statements and Exhibits

(c)       Exhibits

Exhibit No.	Description
99.1	On January 29, 2009 a news release was issued announcing that SouthWest Water Company is to receive $60 million in settlement of New Mexico condemnation proceedings.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereto duly authorized.

		SOUTHWEST WATER COMPANY
		(Registrant)
		By:	/s/ Cheryl L. Clary
			Name:	Cheryl L. Clary
			Title:	Chief Financial Officer
Date:	January 29, 2009

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EX-99.1

Exhibit 99.1

SouthWest Water Company to Receive $60 Million in Settlement of New Mexico Condemnation Proceedings

LOS ANGELES--(BUSINESS WIRE)--January 29, 2009--SouthWest Water Company (NASDAQ:SWWC), a leading provider of water, wastewater and public works services, today announced that it has reached a settlement in the legal proceedings between the Company’s subsidiary, New Mexico Utilities Inc. (NMUI), and the Albuquerque Bernalillo County Water Utility Authority (ABCWUA).

The agreement calls for ABCWUA to acquire the assets of NMUI in settlement of condemnation for $60 million. The funds will be paid to SouthWest Water at closing which is expected within 120 days. ABCWUA also agreed to offer employment to NMUI employees.

In addition, the settlement resolves all other legal issues between NMUI and ABCWUA including the dispute over the sewer fee ABCWUA charged NMUI for the treatment of wastewater and the ownership of the return flow credits from that treated wastewater. As part of the settlement, NMUI will pay $7 million to ABCWUA at the time of closing to resolve the sewer fee issue.

“We are pleased to receive fair value for our New Mexico assets and bring to resolution three long running and costly legal battles,” said Mark Swatek, chief executive officer and chairman of SouthWest Water. “While we regret that we will no longer be serving the residents of Albuquerque, management can now refocus its energies and resources on operating and growing our business.”

The company will use the proceeds to retire NMUI debt of approximately $12 million as of the anticipated closing date and use the remaining cash proceeds to pay down its $150 million credit facility. At December 31, 2008, the outstanding balance on the credit facility was $98 million.

SouthWest Water Company provides a broad range of operations, maintenance and management services, including water production, treatment and distribution; wastewater collection and treatment and customer service. The company owns regulated public utilities and also serves cities, utility districts and private companies under contract. More than two million people in 10 states depend on SouthWest Water for high-quality, reliable service. Additional information may be found on the company’s website: www.swwc.com.

CONTACT:
SouthWest Water Company
DeLise Keim, VP Corporate Communications
213.929.1846