Water rates to edge up slightly in 2026

A core element of Denver Water’s mission is ensuring the large, complex system that collects, cleans and delivers drinking water for 1.5 million people is prepared to meet future challenges. 

And with more than 100 years of operations under its belt, Colorado’s largest water provider, which serves about 25% of Colorado’s population, is in the biggest period of capital investment in its history. Denver Water expects to invest about $1.7 billion into the system during the next 10 years. 

“The work we do provides the critical water supply that the community we serve needs to thrive and grow,” said Denver Water CEO/Manager Alan Salazar.

“Continuing to maintain and invest in the system that supports our water supply will ensure that we — Denver Water as well as our customers — are ready for what lies ahead, from a warming climate to the potential for new regulations, while keeping rates as low as good service will allow,” Salazar said. 

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Responsibility to maintain and protect the state’s largest water system, along with a desire to encourage water conservation, keep essential indoor water use affordable and ensure the utility is financially stable, were incorporated into the Oct. 22 decision by Denver’s Board of Water Commissioners to approve new water rates for 2026. 

Denver Water is protecting and preparing the complex system and its customers for the future in many ways, including: 

• The Lead Reduction Program, which started in 2020, is protecting customers from the risk of lead in their drinking water and to date has replaced more than 35,000 old, customer-owned lead service lines at no direct cost to customers.
• The new Northwater Treatment Plant, which began operations in 2024, can clean up to 75 million gallons of water per day and can be expanded when needed to 150 million gallons per day.
• The Gross Reservoir Expansion Project, which began construction in 2022, is designed to nearly triple the reservoir’s storage capacity.
• The Landscape Transformation Program, which helps customers remodel landscapes dominated by water-intensive Kentucky bluegrass into water-wise, climate-resilient ColoradoScapes.
• And ongoing work to replace aging water mains, upgrade infrastructure on the utility’s southern collection and treatment system, and reach a net-zero carbon emissions goal by 2030.

Learn how Denver Water is investing in the system that supplies clean, safe drinking water to 1.5 million people every day.

Overall, Denver Water expects to invest $1.7 billion over the next 10 years in projects that will maintain, repair, protect and upgrade the system, and make it more resilient and flexible in the future. 

In addition to rates paid by customers, funding for Denver Water’s infrastructure projects, day-to-day operations and emergency expenses like water main breaks comes from bond sales, cash reserves, hydropower sales, grants, federal funding and fees paid when new homes and buildings are connected to the system.

The utility does not receive tax dollars or make a profit. It reinvests money from customer water bills and fees to maintain and upgrade the water system. 

Watch a video on "Where does Denver Water get its water from?": 

And the utility is committed to delivering a safe, clean and affordable water supply to its customers while managing the impacts of the larger economy, from inflation to supply chain issues. 

How the 2026 water rates will affect individual customer bills will vary depending on where the customer lives (either in Denver or in one of the utility’s suburban distributor districts) and how much water they use. 

And major credit rating agencies recently confirmed Denver Water’s triple-A credit rating, the highest possible, citing the utility’s track record of strong financial management. 

Also, it’s important to note that Denver Water has made clear in discussions with the Denver Broncos that any costs associated with relocating some of the utility’s operations facilities, if needed, to accommodate a new stadium cannot be financed or subsidized by its ratepayers. (See Denver Water’s statement on the Broncos’ Sept. 9 announcement of Burnham Yard as their preferred site.) 

New rates for 2026

Monthly bills for single-family residential customers are comprised of two factors: a fixed charge, which helps ensure Denver Water has a more stable revenue stream to continue the necessary water system upgrades to ensure reliable water service, and a volume rate for the amount of water used.

Combining both of those factors, a typical single-family residential customer who uses 104,000 gallons of water annually will see their monthly bill increase by an average of $2.45 to $3.30 over the course of the year, depending on where the customer lives (in Denver or in one of the utility’s suburban distributor districts) and the type of service the customer’s suburban distributor district receives from Denver Water. 

(See the infographic below for information about Denver Water’s suburban distributor districts, types of service and rates.) 

The monthly bill example above includes an increase to the fixed monthly charge, which is tied to the size of the meter. For most single-family residential customers with a 3/4-inch meter, the fixed charge will increase by $1.85 in 2026, to $20.91 per month.

The more you use, the more you pay

After the fixed monthly charge, Denver Water’s rate structure for residential single-family customers has three tiers based on the amount of water used. The tiers are designed to keep essential indoor water use affordable while encouraging water conservation outdoors. (See additional details about the 2026 rates for the three tiers in the infographic below.)

• The first tier is charged at the lowest rate and covers essential indoor water use for bathing, cooking and flushing toilets. Each customer has their individual first tier determined by the average of their monthly water use as listed on bills that arrive in January, February and March — when there is very little or no outdoor watering.
• The second tier is for water consumption, typically used for outdoor watering, that is above the customer’s first tier and up to 15,000 gallons of water per month. Water use in this tier is considered to be an efficient use of water outdoors.
• The third tier is for water use of more than 15,000 gallons per month. It is priced at the highest level to signal potentially excessive water use and encourage conservation efforts by larger-lot customers.

Bills in the summer months can be higher if customers use water to irrigate their outdoor landscapes. 

Need help? 

Denver Water offers one-time payment assistance to customers who may qualify. The utility’s Customer Care representatives also can help customers navigate payment options and unique circumstances. Customers can reach them via denverwater.org/ContactForm or by calling 303-893-2444.

What customers can do to save water, money

Denver Water encourages all customers to conserve water where they can indoors and out.

Finding and plugging leaks inside the home can be done year-round, and the utility offers rebates for qualified water-saving toilets and sprinkler equipment.

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Outside, Denver Water encourages customers to conserve water by remodeling unused areas of water-intensive Kentucky bluegrass into more diverse, water-wise ColoradoScapes that fit naturally into our dry climate and are interesting to look at through all seasons. These drought-resistant and climate-resilient ColoradoScapes include tree canopies and plants that help maintain vibrant urban landscapes and benefit our communities, wildlife and the environment.

Using less water also means more water can be kept in the mountain reservoirs, rivers and streams that fish live in and Coloradans enjoy. It also can lower monthly water bills, saving money.

Note 1: An individual customer’s monthly water bill will vary depending on where they live in Denver Water’s service area (in Denver or in one of the utility's suburban distributor districts), the types of service the suburban distributor district receives from Denver Water, and how much water the customer uses.  

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Note 2: The difference in volume rates (in the infographic above) for Denver Water customers who live inside Denver compared to those who live in the suburbs is due to the Denver City Charter (see Operating Rules), which allows permanent leases of water to suburban water districts based on two conditions: 1) there always would be an adequate supply for the citizens of Denver, and 2) suburban customers pay the full cost of service, plus an additional amount.