It’s a drought. And drought pricing is one of the many tools Denver Water has available to incentivize customers to reduce water use, stretch our stored water supply and help ensure our ongoing ability to operate and maintain the system that delivers clean, safe water to 1.5 million people.
Temporary drought pricing on outdoor water use was approved by the Board of Water Commissioners on April 8, 2026, and applicable starting with May 2026 water use as reflected in June 2026 bills. Drought pricing on outdoor water use will be in effect through April 30, 2027, or until further action by the board.
Let's take a closer look at your monthly bill from Denver Water, which contains a lot of information.
- Billing date: The date Denver Water reads your water meter.
- Account number: The account number for the property needed to set up a self-service Denver Water Online account and make a payment.
- Customer ID: A unique customer identification number for owners, tenants and property managers to set up a self-service Denver Water Online account and make a payment.
- Due date and amount due: The bill is considered delinquent six days after the due date.
- Rate: You will see two descriptions here. One is for the rate category and the other for the service type. Customers are charged based on their rate category and service type, which define how the water is used at a property. There are three rate categories: residential, nonresidential (commercial and multiunit properties) and irrigation. The service types are either: “Inside City” for Denver customers, or “Total Service” or “Read and Bill” for suburban customers who receive a bill from Denver Water.
- Average winter consumption: This is the calculation of the monthly water consumption and number of days in the billing period on bills dated January, February and March. Your Tier 1 rates are based on your average winter consumption.
- Billing period, meter information and consumption: We use billing dates, number of days and meter information to determine consumption. Denver Water charges for water in 1,000-gallon increments and rounds down to the nearest 1,000 gallons. (For example, if this month’s consumption is 2,999 gallons, this month’s bill will reflect charges for 2,000 gallons and the remaining 999 gallons will be charged on next month’s bill.)
Denver Water’s rate structure has three tiers based on the amount of water used. The tiers are designed to keep essential indoor water use for bathing, cooking and flushing toilets affordable while encouraging water conservation outdoors.
- Tier 1: This rate is based on your average winter consumption, which represents essential indoor water use. As noted above, average winter consumption is determined by the average of your billed water use for the months of January, February, and March, and is recalculated each year. The Tier 1 allotment range is 5,000 to 15,000 gallons per month and is individualized to each customer. If a customer’s average winter consumption is less than 5,000 gal./mo., the customer will only be charged for what is used and their Tier 1 allotment will be set at 5,000 gal./mo.
- Tiers 2 & 3: This is water use above the average winter consumption, or nonessential water use for outdoor irrigation that is charged at higher rates. The Tier 2 allotment is 15,000 gallons, which provides sufficient water for efficient outdoor irrigation. Tier 3, which is water use above the sum of a customer’s Tier 1 plus Tier 2 usage, signals potentially excessive outdoor water use.
In April 2026, the Denver Board of Water Commissioners implemented temporary drought charges for Tiers 2 and 3, which reflect outdoor water use, to signal the value of water in a drought and help incentivize saving water. The temporary drought charges are added on top of the existing 2026 water rates.
- Tier 1: Essential indoor water use is EXEMPT from drought charges.
- Tier 2: Additional $1.10 per 1,000 gallons.
- Tier 3: Additional $2.20 per 1,000 gallons.
The fixed monthly charge is based on meter size and helps ensure Denver Water has a more stable revenue stream to continue the necessary water system maintenance and upgrades to ensure reliable water service.
Water usage over previous 12 months and this month’s consumption compared to the same month last year.