The System Development Charge (SDC), often referred to as a "tap fee," is a one-time charge assessed to new development and certain redevelopment. These fees help us expand and maintain the water infrastructure needed to serve new customers.

Through the Water Efficiency System Development Credit program, qualifying projects can receive a credit of 20% on their SDC by going beyond standard building codes and incorporating highly efficient fixtures, appliances and landscapes that significantly reduce water consumption.

By designing and building for water efficiency, you can qualify for a credit of 20% on your System Development Charge. Eligible projects implement indoor and outdoor measures that achieve a 20% or greater reduction in projected water usage compared with standard construction. This includes:

• Indoor Water Efficiency: Installing ultra-high efficiency toilets, urinals, showerheads, faucets and other fixtures and appliances. 
• Outdoor Water Efficiency: Installing landscapes with climate-adapted water-wise plants (ColoradoScapes), efficient irrigation systems and smart controllers.

For more details, see the sample Water Efficiency Credit Program agreement form.

• Financial Savings: Reduce upfront development costs with a credit of 20% on your System Development Charge.
• Increased Property Appeal: Water-efficient properties offer lower monthly utility bills for future occupants, attractiveness and sustainability for owners and operators.
• Environmental Stewardship: Contribute to Denver’s long-term water security and a more resilient community by reducing overall water demand.
• Additional permitting assistance: Our Demand Planning and Efficiency team will guide you through the application and qualification process. 

• Sustainable Growth: Supports responsible development that minimizes the impact on our precious water resources. 
• Water Reliability: Helps ensure a reliable water supply for all Denver Water customers, now and in the future. 
• Reduced Infrastructure Needs: Lower overall water demand can help Denver Water maximize the efficiency of our existing infrastructure and minimize or delay future capital expenditures for costly new water infrastructure. 
• Lower Water Rates: By promoting efficiency, the program helps keep water rates lower for everyone. 

The Water Efficiency System Development Credit is available for various new development projects, including: 

• Multifamily residential
• Commercial 
• Institutional 
• Irrigation Only accounts 

If you’re planning a project, explore how this program can help you build smarter and save more.