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Many water utilities in the United States have developed Affirmative Action and Minority Business Enterprise (MBE) programs in order to expand the opportunities for minorities in employment and in contracting for construction, sales, and services. The evolution of the Denver Water Board's MBE program is described from the time of its inception in May 1978 up until January 1989, when the US Supreme Court announced a decision that directly affects public water utilities with respect to racial preferences in contracting. The implications of this decision are discussed, along with the approaches that utilities can still use to encourage participation by MBEs in bidding and contracting. Includes 15 references.