The U.S. District Court for the Northern District of Iowa has dismissed the lawsuit by the Des Moines Water Works against three drainage districts in Northwest Iowa.
The utility had claimed officials in Buena Vista, Calhoun and Sac Counties failed to adequately manage drainage districts in their area, causing nitrate levels in the water downstream to rise to record high levels.
The Iowa Supreme Court ruled in January that the Des Moines Water Works cannot win any damages in a lawsuit against the drainage districts.
The federal ruling says it is up to the Iowa Legislature to set water quality standards.
Governor Terry Branstad issued a statement saying he was pleased to see an end to the costly litigation brought by Des Moines Water Works.
Iowa Secretary of Agriculture Bill Northey called the dismissal of the lawsuit welcome news.
Radio Iowa contributed to this story
