San Dimas, California, October 13, 2009…. American States Water Company (NYSE:AWR) announced that the Arizona Corporation Commission ("ACC") approved on October 8, 2009 a rate increase for Chaparral City Water Company ("CCWC"), a subsidiary of AWR in Arizona. The rate increase will be effective on October 15, 2009 and is expected to generate additional annual revenues of approximately $1.7 million, a 23% increase over current revenues. In addition, as a result of other actions taken by the ACC on October 8, 2009, AWR will recognize a loss of $760,000, or $0.02 per share, during the third quarter of 2009, which effectively reverses a gain from a settlement with the Fountain Hills Sanitary District that had been recorded in 2005.

A copy of the Company's press release is attached hereto as Exhibit 99.1.

This Form 8-K and the attached exhibit are furnished to, but not filed with, the Securities and Exchange Commission.

Exhibit No. Description

99.1         Press Release: American States Water Company Announces Approval by
             ACC of Increase in Rates


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