The KWD draws water from China Lake and serves about 9,000 residential and commercial customers in Waterville, Winslow, Fairfield, Benton and parts of Vassalboro.
Ware-Butler Building Supply is looking to expand the office building at the former Sacred Heart Catholic Church property and store building materials in the parking lot.
KWD officials say they expect to begin construction next year on the 21,000-square-foot business office and operations complex at 131 Drummond Ave., and move into the facility in 2023.
North River Company bought the two northernmost Lockwood Mills buildings and plans to redevelop them with commercial and retail on the first two floors and apartments on upper floors.