The planned agreement would extend their contract from 5 to 20 years.
Residents may see an average increase of a $1.33 a month in their water bill.
The city says that a franchise fee is included in the agreement, which will go help with repairing roads..
Peoria City Manager Patrick Urich said, "You just drive around town, and you can see, with the number of potholes on arterial streets and residential streets, that is is a big issue that we have to deal with."
The city will hold two public meetings on March 15th and 19th.
The agreement will go to the Peoria City Council for a vote on March 25th.
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