From Historical Rutland: an illustrated history of Rutland, Vermont, from the granting of the charter in 1761 to 1911 by Rev. F. E. Davison, Rutland, Vt.: P.H. Brehmer, 1911, page 41:
Water Works
The first supply of water to the village was provided by Gershom Cheney, proprietor of the Franklin house, who laid wooden pipes from a large spring in the edge of the town of Mendon to the village, and posts were set up at the houses of residents, who paid a certain tax for the water supply. This arrangement continued until several years after the village incorporation, under the control and ownership of the Aqueduct Company. One of the first acts of the village authorities was the extension of the old pipes for fire purposes. In 1857, a reservoir was erected on Woodstock Ave. on Dr. Porter's lot, from which water was piped in 6-inch pipes to Hodge's corner on Main Street, thence in 5-inch pipes to Washington Street, and in 2-inch pipes to other parts of the village. Bonds were issued for $16,000 to pay for the works, which were to be the property of the corporation. The water rates were fixed at $5 a year for a family of five [42] persons, the Franklin house $45, stores, $5. etc. In 1868 new works were erected at a cost of about $20,000. This supply sufficed for ten years only, and in 1878, a still more extensive system was imperaatively needed. The East Creek was finally adopted as a source of supply and a 12-inch iron aqueduct was laid frem a point on the Creek about three miles from the reservoir, and in 1879 the system of pipes and hydrants was extended generally through the village.