Major aspects of supplying water to the town of Dalby included building a water tower, and providing service connections to 720 homes. Tenders for construction of the water tower were received in May 1936, and by 1937, the 127 ft high water tower was operational.
The water tower was also a landmark for the town, and its gleaming white outline could be seen for miles in any direction. At night, the tower could still be detected as two red beacons were installed on its highest point.