The City of Mountain Iron operates and maintains a municipal water system. Water is provide through two wells and processed through the City's Water Treatment Plant which is located on Mineral Avenue.
Storage consists of on elevated storage tank and one at grade reservoir.
Currently, the City serves the Old Town, South Grove, Mud Lake, Unity Addition, Stoney Brooke and Ann's Acres. Water for Mountain Iron is supply through two wells with a 1,000 gallon a minute pumping capacity. Mountain Iron has one ground and one elevated storage tank with a total holding capacity of 1,575,000 gallons. The daily average demand on the system is 200,000 gallons with a peak demand of 400,000 gallons.