At a public meeting held in Stornoway Masonic Hall on 5 August 1842, chaired by Sir James Matheson, it was agreed to establish a joint stock company, the Stornoway Water Co Ltd. Roderick Macaulay, a local merchant, was elected as secretary and that the share capital be £1500. As gas company was already established and it was desirable that as pipes for that were being laid that water pipes also be laid at the same time to bring fresh water into the town from the filtration system to be installed. The company looked to work with the gas company as far as possible to share reduce costs and disruption, and the Gas Company’s manager, Mr Wilson, to superintend the opening of drains, laying of pipes and collection of water dues with the Water Company paying one-third of Mr Wilson’s salary.
The company supplied water to the properties in Stornoway although those wanted to be connected to the system had to pay for pipes to be laid into their property from the main. Rates were to be paid quarterly in advance and the company had a right of inspection within properties to monitor the repair of the system and water use.
In 1870 the Burgh Commissioners of Stornoway tendered the sum of £750 to purchase the water plant of the company which was refused, the Company wanting £1300 seeing as the outlay to that date had exceeded £2000. In December 1870 it was agreed by the shareholders however to accept the Burgh’s offer of £750 for the plant. It was agreed to wind up the company with its powers and services transferring to the Burgh of Stornoway. The sale was completed by 1872 and the company wound up.