A typhoid epidemic that struck Eugene in the first decade of the 20th century provided the catalyst that led to the creation of EWEB. When the outbreak was traced to the privately owned water company, outraged citizens sprang into action, voting in 1908 to buy the system and create a municipal, citizen-owned water utility.
The Eugene City Council ordered the construction of a hydroelectric power plant that would power the pumps necessary to ensure adequate water pressure. When the Walterville Hydroelectric Plant on the McKenzie River was completed in February 1911, the City Council transferred control of the utility to a separate citizen board, which met for the first time on March 11, 1911.