An SDC is a one-time charge assessed to new development to recover the cost for the capacity required to provide service. SDCs are also assessed to existing customers that require an increase in capacity. SDCs, sometimes referred to as tap fees, provide a source of funds that allow utilities to finance future projects to serve growth as well as a reimbursement mechanism for the up-front funds that have been contributed by existing rate-payers to fund expansion projects. SDCs serve to mitigate inequities between new and existing customers by requiring ‘growth to pay its own way.’ Denver Water's SDCs are among the lowest on the Front Range, based on a regional survey of single-family SDCs.
The primary drivers of SDCs include:
- Increase cost of water rights.
- Change in the estimates of capacity available in the existing system.
- Increase in the replacement cost of existing assets, such as: conduits, transmission mains, water storage, treatment plants, and pumping facilities.
- Addition of growth-related projects.
After holding Denver Water’s System Development Charges flat since 2013, the Denver Board of Water Commissioners voted March 26, 2025, to increase the fees for new or increased water service starting Jan. 1, 2026.
Denver Water’s new SDC fee schedule will be implemented in a two-step phase-in, with the first step affecting projects that submit a complete application for water service and provide payment on or after Jan. 1, 2026. The second step of the phased-in increase will be implemented on July 1, 2026. The fee schedule will be reviewed every two years.
Note: Denver Water’s Water Efficiency Credit Pilot Program offers a 20% credit on the System Development Charge for certain developments that implement specific water conservation measures (including: fixtures, appliances and landscapes) reducing usage by at least 25%.
For more information, please reach out to the Water Sales team (Sales Administration) or email ConservationSDC@denverwater.org.
Denver Water System Development Charges fee schedule through Dec. 31, 2025
| I. Single-family residential7 | ||||
|---|---|---|---|---|
| Treated Water | ||||
| Inside Denver | Outside Denver | |||
| Base Charge | $3,030 | $4,240 | ||
| First 22,000 sq ft, $per sq ft (lot size) | $0.70 | $0.98 | ||
| Over 22,000 sq ft, $ per sq ft (lot size) | $0.35 | $0.49 | ||
| Accessory Dwelling Units 1 | $1,940 | $2,710 | ||
| II. Multifamily7 | ||||
| Treated Water | ||||
| Inside Denver | Outside Denver | |||
| First two dwelling units | $10,040 | $14,060 | ||
| Next 6 dwelling units, $ per unit | $2,420 | $3,390 | ||
| Over 8 dwelling units, $ per unit | $1,940 | $2,710 | ||
| III. Irrigation only6,7 | ||||
| Treated Water | ||||
| Inside Denver | Outside Denver | |||
| Minimum charge: first 5,000 sq ft | $5,820 | $8,150 | ||
| Over 5,000 sq ft, $ per sq ft | $0.87 | $1.22 | ||
| IV. Nonresidential2,7 | ||||
| Treated Water | Nonpotable Water | |||
| Tap Size | Inside Denver | Outside Denver | Inside Denver | Outside Denver |
| ¾ | $10,730 | $15,030 | $9,370 | $13,120 |
| 1 | $19,170 | $26,840 | $16,730 | $23,420 |
| 1 ½ | $42,180 | $59,050 | $36,810 | $51,540 |
| 2 | $76,690 | $107,360 | $66,930 | $93,710 |
| V. Nonresidential Large Meter3,4 | ||||
| Treated Water | Nonpotable Water | |||
| Tap Size | Inside Denver | Outside Denver | Inside Denver | Outside Denver |
| 3 | $126,426 | $132,818 | $110,402 | $154,586 |
| 4 | $229,917 | $322,055 | $200,776 | $281,139 |
| 6 | $517,374 | $724,709 | $451,798 | $632,614 |
| 8 | $774,957 | $1,043,495 | $650,536 | $910,889 |
| 10 | $1,200,204 | $1,681,181 | $1,048,081 | $1,467,538 |
| 12 | $1,235,855 | $1,731,118 | $1,079,213 | $1,511,129 |
| VI. Mixed use5 (sum of the following SDCs) | ||||
| Inside Denver | Outside Denver | |||
| Multifamily component | As set forth in Section II of this schedule | |||
| Nonresidential component $ per square foot of nonresidential gross floor area |
$2.91 | $4.08 | ||
| VII. Special contracts, fixed volume contracts, and large volume customers4 | ||||
| Treated Water | Nonpotable Water | |||
| Inside Denver | Outside Denver | Inside Denver | Outside Denver | |
| Inside Combined Service Area | ||||
| $ per acre-foot | $18,980 | $26,570 | $16,570 | $23,190 |
| $ per 1,000 gallons | $58.26 | $81.57 | $50.85 | $71.19 |
| Outside Combined Service Area | ||||
| $ per acre-foot | $37,210 | $32,470 | ||
| $ per 1,000 gallons | $114.10 | $99.60 | ||
Notes:
- Units such as a guest house or carriage house that are detached from the primary residence and contain provisions for sleeping cooking, and sanitation.
- Includes commercial, industrial, institutional development.
- SDCs for tap sizes greater than 2 inches are determined on an individual basis.
- Applicants with water-intensive processes including but not limited to beverage manufacturing, data centers, electronics or semi-conductors, pharmaceuticals, or food processing may be subject to a volumetric-based SDC, as listed in VII above, if the annual demand requirement exceeds the typical annual demand for the desired tap size.
- Development containing two or more different principal or primary uses such as residential, office, manufacturing, retail, public or entertainment uses.
- Irrigation SDC will be based on the size of the entire licensed property OR the volume of water to be taken on an annual basis but will not be less than the SDC for the size of the tap to be installed.
- Premises located in areas where participation charges apply may be required to participate in the cost of infrastructure needed to serve a specific area. The Sales Administration team can help identify if this charge applies. Contact Sales Administration at watersales@denverwater.org.