US water bills up 62% in a decade, outpacing inflation and incomes, study finds

Food & Water Watch analysis of the 500 largest water systems finds for-profit utilities charge 67% more than public ones

By LineZotpaper
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US households are paying 62% more for drinking water than a decade ago, with increases outpacing inflation, grocery prices and household incomes, according to a new study by the nonprofit Food & Water Watch.

The Washington DC based nonprofit analyzed 2025 billing data from the 500 largest community water systems in the US, which together serve about 155 million people, or 45% of the country's population. The analysis compared current rates with data from a similar Food & Water Watch survey conducted in 2015, and excluded wastewater and storm water charges, which are often billed separately.

In 2025, the average household using 60,000 gallons of water paid $531 for drinking water service. Annual bills ranged from $133 at the cheapest system to $1,416 at the most expensive.

Water prices rose 1.6 times faster than overall inflation between 2015 and 2025. Consumer prices increased 39% over that period, compared with a 62% jump in water bills. Water costs rose more than twice as fast as groceries, up 30%, and eggs, up 28%. Bills also increased 19% more than the national median household income between 2014 and 2024.

Mary Grant, Food & Water Watch's water program director and a co-author of the study, said: "Water bills are increasing much faster than many households can keep up with and these escalating water costs impact every corner of the country. Low-income households are being hit the hardest. Corporate water abuses, federal disinvestment and climate change are supercharging water rate hikes across the country."

The increases varied sharply by state. Water bills in New Hampshire jumped 177% over the decade, followed by Oregon at 114% and West Virginia at 95%. In Louisiana, Maryland and West Virginia, water bills grew at roughly twice the rate of state median household incomes, while in New Hampshire they increased nearly five times faster.

The study found a major disparity between publicly owned and for-profit systems. Corporate-owned utilities charged the average household $823 a year, compared with $494 for public systems, a difference of 67%. Corporate systems made up just 11% of the 500 systems studied but represented 44% of the 25 most expensive, and 70% of the top 10 were for-profit. California accounted for 52% of the 25 most expensive systems. By contrast, all 25 of the least expensive systems were publicly owned, about 60% of them in the south, including many in Florida and Georgia.

Affordability remains a concern for low-income households. Water bills exceeded the study's affordability threshold, defined as more than 1.5% of income for the poorest fifth of households, in 93% of systems. Only Idaho and Utah stayed below the threshold. West Virginia and Puerto Rico faced the heaviest financial burdens, the study found.

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Analysis

Why This Matters

  • Drinking water is an essential service, and the study suggests bill increases are outstripping what many households can absorb, with low-income households hit hardest
  • In 93% of the systems studied, bills exceed the affordability threshold for the poorest fifth of households, pointing to a widening affordability gap
  • The large price gap between corporate and public systems raises questions about ownership and regulation of water utilities

Background

Most community water systems in the US are publicly owned and operated by local governments, funded largely through customer bills. Much of the country's water infrastructure is ageing, and utilities face pressure to pay for repairs, treatment upgrades and climate related work. Federal funding for water infrastructure has been a recurring political issue. The study's authors attribute the rate increases to corporate water abuses, federal disinvestment and climate change.

Key Perspectives

Food & Water Watch: The study's authors argue water bills are rising faster than many households can keep up with, that low-income households are being hit hardest, and that corporate practices, federal disinvestment and climate change are driving the increases. For-profit utilities: The study's data shows corporate-owned systems charge substantially more on average than public systems. The companies are not quoted in the report, but their higher rates reflect a for-profit model accountable to investors as well as ratepayers. Affordability researchers and ratepayers: The threshold analysis shows the poorest households face burdens above recommended levels in nearly all systems studied, with the heaviest strains in West Virginia and Puerto Rico.

What to Watch

  • Further detail from the study on West Virginia and Puerto Rico, identified as facing the heaviest financial burdens
  • Whether state regulators or lawmakers respond to the pricing gap between corporate and public systems
  • Whether federal infrastructure funding changes the trajectory of rate increases in coming years

Sources

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