What is a water board railroad, where would it be located?

I have seen several critters that are lettered for Water Board Railroads. I was curious about what this is. Does it haul chlorine and stuff to the treatment plants to purify the water? I have seen a lot of these that appeared to be in Canada, did this also happen in the US? I wanted to build one to make use of Ish6's new water treatment plant, and I wanted to take my critters for a spin.
 
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