The motto of Oneida's Water Department is "quality on tap." Drawing from the Howard H. Baker Sr. Watershed Lake, a 40-acre impoundment in West Oneida, the Water Department delivers water to nearly 5,000 customers in and around the Town of Oneida.
The town's water plant is located at 965 West Third Avenue in West Oneida. The wastewater treatment plant is located just outside of town on O&W Road.
In October 2010, a $1.3 million grant was announced for water improvements in the Town of Oneida. In November 2010, the U.S. Centers of Disease Control and Prevention announced that the Water Department was the recipient of a fluoridation award.
For the convenience of its customers, the department provides a drive-thru window at its Municipal Drive office for paying water bills during business hours, and a drop-box for paying bills after business hours.