The Wabash River, which is one possible source for LEAP’s water supply.As Indiana pushes forward with the ambitious LEAP Innovation District, a nearly 10,000-acre industrial park in Boone County, concerns are mounting over its immense water demands.
The Citizens Action Coalition (CAC) has functioned as a consumer and environmental watchdog for Indiana residents since its inception in 1974. Given the organization’s long-standing focus on water usage, LEAP falls squarely within its area of expertise.
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CAC officials maintain that the immediate region does not have sufficient water resources to support the LEAP Innovation District (which stands for Limitless Exploration/Advanced Pace). The project’s exorbitant energy demand will necessitate piping in water from the surrounding area, said CAC executive director Kerwin Olson.
Whether that water comes from the Indianapolis water treatment system or from pipelines drawing on the Wabash River (or other possible solutions) is a matter of ongoing debate.
“Even as water scarcity and resources are always top-of-mind for us, what’s going on with LEAP is a three-alarm fire,” said Olson.
To obtain the water needed for the industrial park, the Indiana Economic Development Corp. (IEDC) introduced plans for new infrastructure, including a water pipeline stretching from the Indianapolis area to Lebanon in Boone County.
Pharmaceutical giant Eli Lilly is set to build a foundry for advanced manufacturing and drug development at the LEAP site, a planned investment of $13 billion. Meanwhile, Facebook parent company Meta is planning a data center at the park’s southern tip, the first phase of a potential $4.8 billion development.
Lilly, Meta and other high-tech tenants sought by IEDC – the state’s lead business development agency – will demand significant water resources in an area where supplies are stretched thin, said Olson.
“Water is becoming more expensive, and these data centers and other projects require tons of water for power,” he said. “We are a water-rich state, but there is not enough in Boone County for a project like LEAP. Placing this in a virtual desert means having to figure out how to transport lots of water at a very high cost.”
Airing of concerns
According to the IEDC, the Indianapolis pipeline would deliver 25 million gallons daily to the Lebanon area. The pipeline would be supplied by Citizens Energy Group, which runs Indianapolis’ water and stormwater system. Currently, the Indiana Finance Authority is studying the feasibility of a larger pipeline originating in Tippecanoe County that is capable of carrying 100 million gallons daily.
IFA officials have said the Indianapolis-derived pipeline would meet regional water needs for the next 15-20 years. Critics, including Olson of CAC, question who will pay the tab for new water infrastructure – Indiana’s budget committee approved $101 million for the Indianapolis pipeline in August, covering both land acquisition and infrastructure costs.
“We get frustrated, because the cost to ratepayers is not part of the conversation,” Olson said. “Ratepayers should not be economic development tools.”
Looking at the Tippecanoe County plan, the IFA’s North Central Indiana Regional Water Study, published in January 2025, takes a broader look and evaluates current and future water supply and demand across a 15-county region within the upper Wabash River watershed. The study projects water demand in the region will rise to 260 million gallons per day (MGD) by 2070, driven by increased industrial use and public supply needs.
The report states that:
- Current withdrawals total 789 MGD, dominated by cooling water for energy production.
- Groundwater reliance is increasing, as surface water withdrawals have decreased by 50% since 2007.
- Seasonal variability is a challenge, with fall expected to see the greatest decline in water availability.
- Growing economic development is increasing pressure on water resources.
- Localized shortages may emerge, especially in areas with high demand, like LEAP’s own Boone County.
For LEAP, the study underscores those ongoing concerns about the sustainability of water withdrawals at such a scale. While the state has identified potential water sources, the study urges better planning and coordination to prevent future shortages.
To that end, the LEAP water supply concerns have prompted two Indiana senators to file legislation aimed at increasing oversight of what they consider an under-regulated process. State Sen. Eric Koch (R-Bedford)’s Senate Bill 4 proposes a permitting process for future long-distance water transfers, similar to the pipeline projects submitted for LEAP.
While the bipartisan bill takes a neutral stance on the planned innovation district, the pipeline pause has given lawmakers time to consider the project’s broader impact, noted Koch.
“This [bill] is not about LEAP, it’s about the next LEAP district,” Koch said. “It creates a process to provide oversight of the growing consumption of water in our state. We have mega-users like microchip and battery companies looking to come in to our state, so the permitting process will ensure that high-volume transfers of water are in the public interest.”
Shining a light
SB 4 would require utilities or large private sector users to get authorization from Indiana’s Department of Natural Resources before carrying out a water project. A second permitting process would necessitate that all large, long-haul water pipelines obtain approval from Indiana’s Utility Regulatory Commission.
Alongside Koch’s legislation, Sen. Spencer Deery (R- West Lafayette) has proposed a two-year task force to study water regulation. Paired with the task force is a two-year moratorium on large-scale water withdrawal projects and pipelines in Deery’s Wabash district.
Koch said that “oversight” is the watchword for SB 4, which passed through the Indiana Senate on Feb. 4.
“There would be multiple sets of eyes on these projects, something that does not exist today,” said Koch. “The bill is not pro or con for LEAP, but about finding solutions to future projects.”
Senate Bill 28, another proposal co-signed by Koch, aims to establish a formal reporting process for well failures at groundwater withdrawal facilities, ensuring prompt investigation by state officials.
Olson of CAC said that any discussions about LEAP must include the treatment and disposal of hazardous waste generated by its companies.
“Microchip and battery manufacturing are fairly dirty industries,” Olson said. “Nobody’s talking about the ecological impacts of effluent discharge from these companies.”
CAC is focusing a portion of its advocacy efforts on SB 4, which it sees as vital to protecting consumer goodwill. Ultimately, Olson’s organization envisions an Indiana “water management authority” collaborating with other agencies on transformative projects like LEAP.
“There should be a central repository or system that ensures we’re making the right decisions when it comes to water,” said Olson. “Assuming that [SB 4] makes it to the finish line, then it’s a matter of getting those new policies in place so we can bring some sunlight into the process.”
