Kansas City Water Services Department (WSD) provides water, wastewater and stormwater services to 650,000 customers in their 400 square mile service area. As part of a city-wide optimization program, WSD developed a Competitive Business Plan (CBP) which identified how WSD will improve service levels and minimize annual operating costs. Certain key conclusions in the CBP led WSD to adopt asset management as an integral part of its ongoing improvement program. The expected outcome is lower costs, assets that last longer, and more efficient use of WSD staff time. WSD has adopted the Australia/New Zealand approach to structure its program. Phase 1 of the program has included several elements: review of computerized maintenance management practices; development of a conceptual information systems plan; preparation of an enterprise asset management plan; and definition of hierarchies and templates for asset inventories. Kansas City is one of the first utilities in the United States to commit to sustainable asset management practices as the foundation of its improvement program. This paper summarizes the results of Phase 1.