US household water and sewer charges reached a five-year high in 2025, increasing by 5.1% and outpacing inflation, according to Bluefield Research, one of the leading providers of global water market data and insights. Bluefield’s annual US Municipal Water & Sewer Rate Index, which benchmarks utilities across 50 cities nationwide, shows a cumulative five-year increase of 24.2%, highlighting growing cost pressures on both utilities and ratepayers.

Household water and sewer charges are rising at different rates — and for different reasons. Between 2024 and 2025, water rates rose by 6.0%, compared with 4.8% for wastewater. In addition to higher operating costs and regulatory requirements, drinking water costs are partly driven by supply-related investments, including imported water, reuse initiatives, and source water protection, as well as ongoing efforts to reduce water loss in distribution systems. In contrast, wastewater charges reflect the scale and complexity of treatment infrastructure while facing rising energy and labour costs. Despite slower increases, sewer service charges have exceeded those for water by an average of $19.23 per month over the past five years.

“2025 marks a five-year high for the year-on-year increase in combined water and sewer charges,” said Megan Bondar, an analyst at Bluefield Research. “Although rates are rising faster than consumer inflation, utilities themselves face inflationary pressures, which are increasing the cost of maintaining and modernising ageing infrastructure.”

Steep rises in electricity, treatment chemicals, construction materials, and financing costs are straining utility budgets — and ultimately, household bills. In 2025, Baltimore, Maryland, reported a 22% increase in the cost of water treatment chemicals and received a wastewater construction bid 14% higher than the original estimate. Similarly, Oklahoma City, Oklahoma, cited an 85% rise in electricity costs and a 155% increase in chemical expenses as drivers of its forthcoming rate adjustments. This has prompted some municipal utilities, such as Houston, Texas, to link rate adjustments directly to inflation.

These trends reflect a longer-term pattern. Since 2000, the cost of water, sewer, and refuse collection services has risen far faster than overall consumer prices. Between Jan 2000 and Dec 2025, prices for these services increased by 207%, compared with 93% for general inflation over the same period. Rising charges are translating into tangible household strain: paying a monthly water and sewer bill now requires an average of 11.5 hours of minimum-wage labour.

Many utilities are responding proactively to affordability concerns. Cities including Seattle, Washington; San Antonio, Texas; and Philadelphia, Pennsylvania have introduced customer assistance programmes (CAPs) offering bill discounts, lifeline rates for essential water use, and temporary financial support targeted by income, age, or veteran status. To promote greater transparency, Fort Worth, Texas; Cleveland, Ohio; and Portland, Oregon, provide detailed public reporting showing consumers how ratepayer revenues are allocated.

“Utilities that introduce rate adjustments gradually can help ease public concern and build consumer trust,” Bondar added. “It is worth noting that five of the 50 utilities analysed reported flat or declining rates.”

Rate pressures also vary widely across regions. Households in the northeast ($147) and west ($143) face the highest combined monthly water and sewer charges on average. In parts of the west, utilities are increasingly investing in climate resilience measures, such as flood protection and seismic upgrades. In the northeast, water quality concerns, ageing infrastructure — including combined sewer systems — and higher energy costs are major drivers of investment.

“Utilities face difficult decisions about how to maintain reliable service while keeping water affordable for households,” said Bondar. “But with ageing infrastructure, rising operating costs, and growing regulatory requirements, there is no indication that the upward trajectory in rates will change anytime soon.”