In the late 1980s, Governor Martinez attempted to halt development on Charlotte County's barrier islands by denying access to mainland utility services like water and wastewater treatment. However, developers countered this by establishing small, localized utilities. For instance, Palm Island Resort created Knight Island Utilities (KIU) to manage both water and wastewater services. The Pelican Inn initially had a limited water treatment system before joining Bocilla Utilities (BU), which now provides water treatment for Don Pedro Island and Knight Island, covering 435 Equivalent Residential Connections (ERC) with a potential build-out of approximately 700 homes/units.

On Little Gasparilla Island (LGI), two utilities emerged: Hideaway/Placida Harbour Condo, offering water and wastewater services for 140 ERCs, and Little Gasparilla Water Utility (LGWU), serving 520 ERCs with the potential to support around 750 homes/units. Between 1995 and 2000, KIU transitioned to a not-for-profit, member-owned utility, while LGWU remained regulated due to insufficient interest from property owners in converting to a member-owned model. LGWU was mandated to become a regulated utility in 2000 after exceeding 100 customers and has since been regulated by both the Florida Public Service Commission (FPSC) and Charlotte County at different times. All public utilities are overseen by the Florida Department of Environmental Protection, but not-for-profits are exempt from FPSC regulation.

Approximately 15 years ago, utility owners approached Charlotte County to explore the feasibility of consolidating services and providing wastewater solutions for the islands. A county-commissioned study estimated this consolidation project would cost over $20 million, leading to its discontinuation. Subsequently, these utility owners applied to the FPSC to provide wastewater services but withdrew their application when they couldn't secure county support.

In 2022, Environmental Utilities (EU) refiled an application with the FPSC after securing a "Bulk Service Agreement" with Charlotte County Utilities and encouraging island residents to form a user-owned Utility District similar to nearby Englewood Water District and Gasparilla Island Water Authority. However, this proposal was rejected by PIE leaders opposed to centralizing the island's wastewater system.

The FPSC evaluates applications based on financial ability, experience, and demonstrated need. EU's initial application failed due to insufficient proof of need. In 2024, EU is renewing its efforts to secure a certificated service area (CSA), aiming to better articulate the necessity and outline a clear path forward for providing essential services to Charlotte County's bridgeless barrier islands.