Indiana American Water warns of algal toxins at Prairie Creek Reservoir, outlines restrictions and collaboration with Muncie

Indiana American Water told the Muncie Park and Recreation Board on May 20 that recent sampling at Prairie Creek Reservoir detected microcystin and elevated nitrates near the campground and that the company will press for changes to recreational uses to protect the reservoir as the city’s primary drinking-water source.

Wade Amos, director of operations for Indiana American Water, told the board the company values its long relationship with Muncie but must “find the balance between recreation and what the reservoir is and what it was intended to be, which is the primary drinking source for the city of Muncie.” He described addenda to a conservation and recreation agreement dating to 1961 and said some current uses around the reservoir are not consistent with the original terms.

Company water-quality lead Chris Gosnell said the utility’s source-water protection and cyanotoxin-monitoring program found early-season cyanobacteria growth in 2024 and detections of microcystin in sampling at the west-side pier and the cove just south of the campground. “We’ve not seen any detects in our finished water,” Gosnell said, adding that monitoring and treatment at the intake on the White River maintained finished-water safety for customers.

Indiana American Water provided a timeline of sampling and visible indicators: taste-and-odor compounds such as geosmin have trended upward in recent years; monitoring in May showed cyanobacteria detections near the historic ADA pier; a visible harmful algal bloom (HAB) indicator appeared in June; sampling after Fourth of July weekend showed spikes in nitrates and algal growth near the campground; and by mid-September the company saw significant impacts near its intake. Gosnell cited U.S. Environmental Protection Agency 10‑day health advisory levels of 0.3 parts per billion (ppb) for infants and preschool children and 1.6 ppb for school-age children and adults when explaining why early action matters.

Amos said the company will pursue several steps: stepped-up monitoring and analytical support from its parent company’s lab network, expanded collaboration with the city and local stakeholders, habitat restoration on lands enrolled in Indiana’s classified forest/wildlife programs, and work to address a porous holding tank and faulty wastewater infrastructure at the campground. He also announced specific use restrictions the company intends to implement: “We are of the position that we’re gonna discontinue both the ATVs and the horse riding that happens on the west side of the reservoir,” and said that 2025 will be the last season for those activities on that side unless alternative arrangements are found.

Amos framed those changes as the company’s policy position rather than a city ordinance or board action; he said Indiana American Water will engage the city and parks department in an “open” assessment of sustainable numbers of boats and campsites and invited park staff to participate. Board members and staff asked for documentation and a seat at future discussions; the company said it will provide a two-page summary handout and work with city staff on a formal process rather than informal “handshakes.”

Public commenters who said they live near the reservoir pressed for caution and inclusion. Jackie Fisher, a resident who said she lives in southeast Delaware County, asked whether the parks budget will cover additional maintenance if park acres increase and raised concern about long-term maintenance funding. Greg Wilkins, president of the Muncie Light Horse Club, told the board that the club has invested about $12,000 in trail improvements and that the club worked with parks staff to authorize trails and mitigate 4x4 vehicle damage; he requested that horse-club representatives be included in future talks with the water company.

The utility did not propose closing public access to the reservoir, and Amos said social-media rumors to that effect were “far from the truth.” The company said finished drinking water tested below cyanotoxin levels of concern but recommended collaborative changes to reduce risk, including repairing or replacing porous holding tanks at the campground and assessing campsite and dock counts against sustainable thresholds. It also said some private docks and lakeside clearing appear to have occurred on land intended as part of the leased property, and that encroachment and unapproved trails are issues the company wants to stop.

The board did not adopt any ordinance or formal action during the meeting; Indiana American Water presented its findings and requested to work with Muncie City and the parks department on specific follow-up actions and site assessments. Board members expressed support for inclusion in the company’s planning and requested written documentation and timelines for assessments.

What’s next: Indiana American Water said it will begin outreach and joint planning with city and parks staff, provide written summaries of sampling and proposed restrictions, and work on solutions for the campground wastewater system. The park board agreed to take part in assessment discussions and to be included in future meetings on sustainable recreation and water-quality controls.