Sanitary sewers were first installed in the Manson area in the year 1946. The downtown business district had been served by septic tanks and drainfields up to that time. The business association took it upon themselves to form the Manson Sewer Company and installed the first collection system down the back alleys of the downtown business district. Septic tanks were installed near the corner of Manson Boulevard and Pedoi Street to collect the sewage wastes and to treat them with chlorine. A six-inch steel pipe outfall was constructed to dispose of the treated wastes in Manson Bay. The 1,000-foot outfall pipeline was connected to the septic tank, plugged on one end and floated out to its proposed alignment. The plug was pulled and the outfall was sunk into place. The Manson Sewer Company later expanded to serve the Methodist Church and a small residential area around MacLaren and Nequilikin Streets.

The Manson School District followed the lead of the Manson Sewer Company and built their own sewage disposal system in the early 1950's. They laid a six-inch wood stave pipeline from the school property down Totem Pole Road to a tank installed on Olive Avenue. Sewage was treated at septic tanks at each school and discharged into the wood line. A six-inch steel line went straight down the hill from the tank to a separate six-inch steel outfall in Manson Bay.

The newest sewer entity in the Manson area was Manson Sewer District. Manson Sewer District was formed in June 1953 under Title 56 to serve residential lands adjacent to the downtown business district. The formation of a sewer district allowed the townsite area to build a large infrastructure and finance it by selling ULID bonds. The largest percentage of the Manson Sewer District system was built in 1954 by ULID bonds. Sewage was collected to a central location near the corner of Manson Boulevard and Bell Streets. A large septic tank system was built for primary treatment together with chlorinating facilities for disinfection. A third outfall was constructed to dispose of the treated sewage into Manson Bay.

In July 1970, directives were issued by the Washington State Department of Ecology to the three entities operating the sewerage facilities and discharging into Lake Chelan. The entities were told to substantially improve the quality of their sewage effluent being discharged to advanced sewage treatment standards or to eliminate the discharge altogether.

The three small entities with no paid staff did not have the wherewithal to deal with this issue. A preliminary engineering study was done for the Lake Chelan Water Quality Association, a group of citizens in the Manson area, which concluded that a sewage lagoon providing secondary treatment and discharging the effluent to Lake Chelan offered the least expensive treatment. The new water quality standards however required advanced treatment for all sewage discharges to Lake Chelan. This made the studied alternative of local treatment impractical.

In March 1971 Chelan County did a Comprehensive Water and Sewer Plan for all of Chelan County. The plan recommended that Chelan County government was in the best position to develop water and sewer systems in areas where there was a need. The plan offered three alternatives for sewage disposal in the Chelan Basin. The preferred alternative provided for installing a sewer interceptor from Manson to the primary sewage treatment plant in the City of Chelan. The County proceeded with developing a Facilities Plan under section 201 (c) EPA guidelines. The plan was completed in June of 1974 and made the county sewer system eligible for 75% federal grants together with 15% state grants in total assistance.

As part of an agreement with Chelan County the Manson Sewer Company and the Manson School District were annexed into the Manson Sewer District and dissolved. Chelan County was then able to contract with a single entity in Manson. Contracts were also executed with large developers including Wapato Point, MA-8 and Lake Chelan Shores to fund the 10% local match and to collectively contract for treatment services with the City of Chelan. The facilities were in operation by late 1976.

On January 1, 1979 Manson Sewer District officially dissolved and conveyed all it assets and facilities to the Lake Chelan Reclamation District. In the 1980's the service area was expanded to include several outlining areas. During this time period the District service area began to intermix with the Chelan County service area. In the early 1990's the Lake Chelan Reclamation District began negotiations with Chelan County on taking over the Manson-Chelan Sewer Interceptor. Agreement was reached in May 1994 and ownership of the interceptor lines and pumps were conveyed to both the City of Chelan and Lake Chelan Reclamation District with a dividing line at Rocky Point.