The original source of water for railroad operations in West Yellowstone was a spring located near the South Fork of the Madison River. Water was piped from the spring into town, a distance of over two miles. In 1910, the railroad built a steel water tower southwest of the depot. The tank had a 65,000 gallon capacity and was 24′ in diameter and 20′ high. It stood on a 50′ tower.

Adjacent to the tower was a pump house. Water was pumped from a well which was drilled in 1911, replacing the previously used spring water. A 10″ water column was used to water the locomotives. There was also an underground waterline running to a horse watering trough near the depot. The exterior of the pump house was altered in the 1920s to match the fa├žade of the Dining Lodge and other railroad facilities designed by Gilbert Stanley Underwood.