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The cost of water keeps going up, as most facility managers know. In fact, in many cases the cost of water is rising sharply, with even steeper increases anticipated ahead.
In the Chicago area, for instance, suburbs supplied through the city's Lake Michigan water system saw a 4 percent wholesale rate hike take effect at the start of 2026, and several nearby municipalities — from La Grange Park to Oak Lawn's south suburban customers — passed multi-year rate increases along to residents and businesses this year to keep pace.
So why is the cost of water escalating so fast? After all, historically it has been one of our least expensive natural resources in the United States. The truth is that water has been underpriced for decades. Utility companies are now adjusting charges so they better reflect the actual cost of collecting, storing, and delivering water to consumers.
But there's more to it than that. Drawing on analysis from engineers at firms like Affiliated Engineers, here are seven other reasons the cost of water keeps climbing in the United States:
Old infrastructure. The U.S. Environmental Protection Agency's most recent Drinking Water Infrastructure Needs Survey and Assessment puts the 20-year investment need at $625 billion just to keep drinking water systems functioning — a 32 percent jump from the previous survey. Add in wastewater and stormwater needs identified in EPA's 2022 Clean Watersheds Needs Survey, and the combined national infrastructure gap tops $1.2 trillion over the next two decades. Utility bills are climbing now to start closing that gap.
Loss of federal funds. For decades, the federal government covered the lion's share of the cost to collect and deliver water. Programs like the Bipartisan Infrastructure Law have added funding in recent years, but it still falls well short of the need, leaving states and local utilities to pick up more of the tab through rate increases.
Accounting changes. To avoid raising taxes, many communities are shifting the cost of supplying and maintaining water systems from property taxes onto utility bills instead.
Demographics. Some of the fastest-growing regions of the country are also the ones facing the greatest water challenges, including much of the Sun Belt and many Western states.
Reduced access to clean water. The number of rivers, streams, lakes, and other sources utilities can draw from keeps shrinking due to pollution, contamination, and related pressures.
Climate change. Shifting precipitation and snowmelt patterns are straining the water resources communities rely on to meet human health, food, and energy needs — and utilities are investing heavily in resilience to adapt.
Supply and demand. Basic economics is at play, too. As reliable supplies tighten in the face of the pressures above, costs go up. Water is no exception.
This leaves facility managers with two choices:
1. Pay ever-increasing costs for water and try to pass those costs on to building tenants.
2. Find effective ways to conserve water, such as low-flow and no-flow restroom fixtures.
For both the short and long term, the only real way for managers to get ahead of rising water costs is to reduce water consumption. Waterless urinals are one proven way to do it.
