The water and sewer operations are overseen by a three person commission, who are appointed by the Mayor and approved by the Council.The Stanford Water and Sewer Department provides water and sewer services for the city and the surrounding areas. Water is provided as potable water and for fire protection to the city customers within the city limits as well as potable water for city customers and the McKinney Water district outside the city limits. The water that is produced by the City of Stanford serves approximately 65% of the citizens in Lincoln County. The water is produced in a modern state-of-the-art treatment plant with a daily capacity of 2,200,000 gallons. The current average usage is approximately 1,100,000 gallons per day. The source of the city's raw water comes from two lakes (Harris and Rice) of approximately 35 acres each with approximately 500 acres of water shed each. The city is now also using Buck Creek Lake, a third lake of approximately the same size but with a 6,000 acre water shed.

These three raw water sources will provide the city a supply of water for the next several years. Sewer services are provided primarily for customers within the city limits. The wastewater treatment plant has a capacity of 800,000 per day. The city currently has funding in place to upgrade the WWTP to 1.2 million gallons per day, and expects to complete the upgrade within two years. The staff that operates and maintains these operations are fully certified by the state of Kentucky in their various disciplines. The water plant, stand pipes, distribution lines, sewer plant, and collection lines constitute an investment of over $10,000,000 for the City of Stanford.