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Shipshewana is the water service provider for town and for the surrounding area. Water is supplied by three groundwater wells. The water plant has the capacity to pump 450,000 gallons with a peak demand of 420,000 gallons per day.

In accordance with legal requirements, the town maintains a Wellhead Protection Plan approved by the state. Wellhead Protection Plans were developed by all municipal water providers following passage of the Amendments to the Safe Water Drinking Act in 1986. This Act is a formal policy for protection of the states’ drinking water to avoid any contamination.