Yes. Digital water meters operate at much lower levels of radio frequencies than cell phones, microwaves, wireless routers and even baby monitors. The City of Cedar Park has used a radio-read system registered with the Federal Communications Commission (FCC) since 2005. Cedar Park's new system is also registered with the FCC.
Any concerns over the safety of wireless data transmission should be directed to the FCC, as it is the regulatory agency responsible for permitting the safe use of radios.