Water Bills Surge 62% Nationwide: Why Your Utility Costs Are Climbing
Water costs have jumped 62% in a decade. Explore why aging infrastructure and private utility management are driving up household water bills nationwide.
POLICY WIRE — Washington, D.C. — American households are facing a significant financial squeeze as the price of residential water has climbed 62% over the past ten years. A recent analysis from the nonprofit advocacy group Food and Water Watch highlights that these rising expenses are largely driven by the need for utilities to modernize aging infrastructure and address the mounting pressures of climate change.
The financial burden is exacerbated by a reduction in federal assistance for water projects. According to the American Society of Civil Engineers’ 2025 Infrastructure Report Card, Congress has consistently provided at least $1 billion less than the authorized funding levels for state water infrastructure since fiscal year 2022.
The scale of the challenge is immense, with the Environmental Protection Agency estimating in a 2023 survey that U.S. drinking water systems require $625 billion in investment over the next two years to meet health standards and complete necessary upgrades.
Food and Water Watch compiled its findings by examining 500 major community water systems that provide service to 155 million people. The study focused on the annual cost for 60,000 gallons of water—the typical amount used by a household for daily tasks like laundry, showering, and drinking—while excluding separate charges for stormwater or wastewater.
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While the average annual bill across these systems reached $531 last year, costs vary drastically by location. Hempstead, New York, reported the lowest average rate at $133 per year, whereas residents in San Jose, California, faced an average bill of $1,416 in 2025, marking a 163% increase over the decade.
Regional disparities are also stark. Idaho recorded the lowest average costs at $286, while West Virginia, a state with high poverty rates, saw its two largest systems—both owned by American Water—charge an average of $1,383 annually.
The report further noted that for-profit water providers tend to be more expensive than public alternatives. In 2025, private companies charged an average of $823 for water, which is $329 more than the average cost found in public systems.
Reporting by Policy-Wire (PW)
