2010 09 07 LETTER TO SHAREHOLDERS by 9bN92am


                                 1901 Silver Reef Drive, P.O. Box 460627, Leeds, Utah 84746-0627
    Ph: 435-879-0278 // After Hours: 435-669-0361 // E-mail: LDWAoffice@infowest.com // www.LeedsDomesticWaterusers.org

September 7, 2010

Dear Shareholders:

       We are pleased to announce that Elliott Sheltman has been appointed to the LDWA Board of
Directors to fill the vacancy left by Angela Rohr. He will serve the remainder of Angela’s term, which
expires in February 2011. We appreciate Elliott’s willingness to serve and know that he will be a
tremendous asset to the Board.

       Regarding Project Upgrade, the engineering design, environmental and well source studies are
complete, the rights-of-way and easements are approved, and the BLM has approved a new well drilling
site. The construction contract has been awarded to Precision Pipeline, the Utah State Division of
Drinking Water has funded our loan, and we expect construction to begin later this month.

        As construction will take about six months, we hope to minimize your inconvenience. We will
apprise you of when construction will occur in your neighborhood by posting a schedule on our web site,
www.LeedsDomesticWaterusers.org. We have asked Northern Engineering, which will oversee the
project, to be especially responsive to shareholder suggestions or complaints regarding the construction.
Shareholders may contact Northern Engineering at (435) 669-1111 or (435) 635-3465. Our office hours
during construction will be 9:30 AM to 1:30 PM, M-F, to be more available to shareholders.

        Throughout the construction phase, we will be installing new water meters that can be read
electronically. This will provide more timely information on water usage and help identify leaks, saving
water and helping prevent higher water bills. As these meters will make it unnecessary to read the meters
manually, we wish to thank Kelly and Steve Johnson and their family for the great job they have done as
LDWA meter readers for more than 23 years of faithful, dependable service. We are indebted to them.

       As required by the DEQ and Division of Drinking Water, a public hearing on the
environmental impacts associated with this Project will be held in conjunction with our next LDWA
Board Meeting on September 30 at 7:00 P.M. at the Leeds Town Hall. As always, shareholders are
invited to attend the meeting. For more information, visit: www.LeedsDomesticWaterusers.org.

       Finally, I will be resigning effective September 12th as I depart for Argentina for an 18-month
mission for the LDS Church. The Board will need to appoint a new member to serve my remaining term,
which expires in February, so please let the Board know if you are interested in serving. Ben Gordon will
assume the presidency and Randy Stevens the vice-presidency upon my resignation. Danielle Stirling
will continue as treasurer. I wish to thank you for the tremendous support you have given to the Board as
we have undertaken significant obligations to provide a modern culinary water system for this great
community. I am confident that the Board will continue to serve you well.


                                                       Ron Cundick

               Ron Cundick - President // Ben Gordon - Vice President // Danielle Stirling, Randy Stevens - Board Members
                 Scott Hayes - Water Manager/Superintendent // Karen Markovich - Office Administrator/Corporate Secretary

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