The Authority was incorporated by the Townships of Kingston and Dallas and the Borough of Dallas, as the Back Mountain Municipal Authority in March of 1967. The purpose was to provide public sewer services to the founding municipalities.

In March of 1969 the name of the authority was changed to Dallas Area Municipal Authority to more clearly define the service area.

A treatment plant was constructed on the site of the former Piedmont Inn on the original Dallas
Highway. Construction lasted until 1972, when connections to the system began. Harvey’s Lake was connected to DAMA in 1976, Lehman Township connected in 1987 and Jackson Township connected in 1989.

In 1990 facing expensive plant expansion and upgrading to meet increased hydraulic loads and more stringent effluent parameters the decision was made to connect to Wyoming Valley Sanitary Authority and abandon the treatment plant.

In 1987, in response to Act 101 DAMA was asked to develop a solid waste and recycling program for the founding municipalities. In 1991 the collection of trash and recycling was begun. This was accomplished by contract haulers until 2012, at time DAMA acquired a fleet of trucks and hired personnel to complete the task in house.

In 2000, DAMA responded to municipalities need to dispose of yard waste by developing a yard waste composting facility.

In 2014 DAMA purchased the property on State Route 118 in Lehman Township to house the solid
waste, recycling and composting facility. DAMA was again tasked by the member municipalities in 2017. This time the task was to administer their Municipal Separate Small Storm Sewer programs. DAMA has developed a Pollutant Reduction Plan and submitted it for permitting to the Pennsylvania Department of Environmental Protection. A temporary rate structure has been developed and a permanent rate structure is being developed while awaiting permit approval.