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The source of water is two village wells. The reservoir capacity is 200,000 gallons. Caroline's water and sewage treatment facilities are both designed to serve about 800 people, according to the standards of Alberta Environment. The water distribution system has recently been improved by the installation of a new reservoir and pressurization facility, in 1988. The sewage system, located south of the Village, is treated by an aeration lagoon.
Water is billed on a monthly basis. Residential users are billed for water, sewer & garbage services monthly.
Sewage treatment is provided by 2 aerated lagoons. The residential usage rate is $18.00 per month. The commercial rate is the minimum applicable, according to average water usage.
Solid waste from the Village is hauled to a transfer station located 5 miles to the west and is operated by the Rocky Mountain Regional Waste Authority. The usage rate is $10.80 for weekly pick-up, $21.60 for two weekly pick-ups, and $32.40 for three weekly pick-ups.