Californians are facing some of the highest water bills in the United States, with average costs rising significantly faster than inflation, according to a new nationwide survey of major drinking water utilities.
A report by the nonprofit advocacy group Food & Water Watch reveals that four California water utilities rank among the top 10 most expensive nationwide. San Jose Water Co. was identified as the most expensive, with other high-ranking utilities including Escondido, Santa Barbara, and Marin Municipal Water District. The study found that over half of the 25 most expensive water systems are located in California. Specifically, San Jose, San Francisco, Sacramento, and Oceanside utilities charged typical households more than $1,100 last year for indoor water usage.
The report, which compared water bills from 2015 to 2025 based on standard indoor water use, indicates that average bills for 91 California water utilities increased by 83% over the past decade, reaching $693 last year. Mary Grant, water policy director for Food & Water Watch, noted that California is disproportionately represented among expensive states, highlighting water affordability as a critical issue for low-income households. The high costs are attributed to factors such as long-distance water transportation via aqueducts and the operation of desalination plants, as seen in Santa Barbara.
Officials from California water agencies point to several pressures driving up rates, including aging infrastructure, inefficient permitting, and insufficient state and federal investment. Karla Nemeth, executive director of the Association of California Water Agencies, cited these challenges. In contrast, San Jose Water Co. disputed the report's findings, calling the data "erroneously aggregated" and stating that its own data from the California Public Utilities Commission shows it is not the highest-cost utility in the state. The company emphasized its significant infrastructure investments and noted that 42% of customer payments are mandated pass-throughs to Valley Water.
The National Association of Water Companies also criticized the report, arguing that focusing on the largest water systems provides an incomplete and misleading picture. The Food & Water Watch report also found that for-profit water utilities charge, on average, 67% more than government-owned systems nationwide. In California, municipal utilities face rate-setting constraints under Proposition 218, while for-profit companies require approval from the California Public Utilities Commission. The advocacy group urged governments to ban water utility privatization and called for increased federal financial support for infrastructure improvements to manage costs.
Governor Gavin Newsom recently vetoed a bill aimed at assisting low-income Californians with rising water bills, citing the lack of a sustainable, ongoing funding source for a permanent assistance program. Despite the veto, advocates like Michael Claiborne of the Leadership Counsel for Justice and Accountability, express optimism that momentum is building toward a consensus policy to improve water affordability for all Californians.
