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 ratepayers 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.
Following a comprehensive review, Denver Water updated its SDC fee schedule in 2026. Denver Water's SDCs will be adjusted annually based on inflation using the Producer Price Index (PPI) for Final Demand (headline inflation).
Fee schedule effective July 1, 2026
| I. Single-family residential7 |
|---|
| | Treated Water |
| | Inside Denver | Outside Denver |
| Base Charge | $3,380 | $4,740 |
| First 22,000 sq ft, $ per sq ft | $1.01 | $1.42 |
| Over 22,000 sq ft, $ per sq ft | $0.50 | $0.71 |
| Accessory Dwelling Units1 | $2,170 | $3,030 |
| II. Multifamily7 |
|---|
| | Treated Water |
| | Inside Denver | Outside Denver |
| First two dwelling units | $12,350 | $17,290 |
| Next 6 dwelling units, $ per unit | $2,710 | $3,790 |
| Over 8 dwelling units, $ per unit | $2,170 | $3,030 |
| III. Irrigation only6,7 |
|---|
| | Treated Water |
| | Inside Denver | Outside Denver |
| Minimum charge: first 5,000 sq ft | $6,830 | $9,570 |
| Over 5,000 sq ft, $ per sq ft | $1.09 | $1.53 |
| IV. Nonresidential2,3,4,7 |
|---|
| | Treated Water | Nonpotable Water |
| Tap Size | Inside Denver | Outside Denver | Inside Denver | Outside Denver |
| ¾ | $14,610 | $20,460 | $13,250 | $18,550 |
| 1 | $26,020 | $36,420 | $23,580 | $33,020 |
| 1 ½ | $58,460 | $81,850 | $53,000 | $74,210 |
| 2 | $103,920 | $145,480 | $94,220 | $131,910 |
| V. 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 | $3.97 | $5.56 |
| Irrigation, if applicable | As set forth in Section III of this schedule |
| VI. 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 | $29,710 | $41,590 | $26,930 | $37,710 |
| $ per 1,000 gallons | $91.17 | $127.65 | $82.67 | $115.74 |
| Outside Combined Service Area |
| $ per acre-foot | | $58,230 | | $52,800 |
| $ per 1,000 gallons | | $178.71 | | $162.03 |
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 and 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 VI 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.
