In 1973, the residents southeast of the Moscow Cemetery began to experience septic tank failures. This area relied on wells for their domestic water supply. The Latah County Health Department mandated the residents find a solution, or all households in the area would be fined. A steering committee of concerned citizens was organized to address the problem and determined the best solution was to create a sewer district. On June 6, 1974, the Southeast Moscow Water and Sewer District was formed by order of the Second Judicial Court in accordance with Idaho Code 42-32. A Board of Directors, elected by the people of the district, began governing the district. 

After several failed attempts to pass a bond levy, the District was able to secure grants from EPA, HUD, Idaho DHW, and a matching local bond to finance the construction of a sewer main line throughout the district, which connected to the City of Moscow. The main lines and connection lines were completed by the fall of 1981.