Less than 30 years ago, the sewer and water utility of Fayetteville, Arkansas, was dogged by negative headlines — and worse, fined by the Environmental Protection Agency — for generating hundreds of sanitary sewer overflows a year due to inflow and infiltration.

Today, the same utility has made a remarkable turnaround, cutting SSOs to zero.

Now Fayetteville faces a different sort of challenge — maintaining its positive record going forward under new leadership. With...