Americans are paying 62% more for water at home than a decade ago, according to a new study by the nonprofit advocacy group Food and Water Watch. The analysis, which examined 500 of the largest community water systems serving 155 million people, found that the average annual water bill reached $531 last year, up from $328 in 2015.
The study also revealed stark regional differences, with households in San Jose, California, paying the highest average annual bill of $1,100, while those in Hempstead, New York, faced the lowest at $133. The findings underscore the growing financial burden on consumers as utilities invest in aging infrastructure and adapt to climate change impacts.
Infrastructure and Policy Challenges
The rise in water costs is driven in part by the need to upgrade deteriorating systems and comply with health regulations. The American Society of Civil Engineers’ 2025 Infrastructure Report Card noted that federal funding for water infrastructure has fallen short, with Congress appropriating $1 billion less than authorized levels for state projects since fiscal year 2022. The Environmental Protection Agency estimates that U.S. drinking water systems will require $625 billion in investment over the next two years to meet upgrade and health standards.
Regional Disparities in California
The study highlights California as a focal point for high water costs, with four of the top 10 most expensive water utilities in the U.S. located in the state. San Jose Water Co. ranked first, while Escondido, Santa Barbara, and Marin Municipal Water District also appeared in the top 10. More than half of the 25 most expensive systems analyzed were in California, including San Francisco, Sacramento, and Oceanside, where annual bills for a household of three exceeded $1,100 last year. Los Angeles ranked 32nd, with an estimated annual bill of $952.
The high costs in California are attributed to the expense of transporting water long distances via aqueducts, such as those in the State Water Project, as well as the operation of desalination plants in some areas. The study focused on indoor water use, excluding landscaping costs, and compared 2025 bills to 2015 data.
Consumer Impact and Policy Responses
The rising water bills have intensified affordability concerns, particularly for low-income households. Food and Water Watch’s policy director, Mary Grant, emphasized that water affordability is a pressing issue in California, where many struggle to keep up with payments. In response, a Senate bill has been introduced to establish a permanent program to assist low-income customers facing payment difficulties.
The study’s findings reflect broader trends in water pricing, with utilities across the U.S. grappling with the dual challenges of aging infrastructure and climate adaptation. While some regions face modest increases, others—particularly in California—are experiencing disproportionately high costs, raising questions about long-term affordability and equity in water access.