New Report Unveils Enormous Cost of Privatized Water in CA

More than half of the 25 most expensive water systems were in California

Published Oct 6, 2026

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Clean Water

More than half of the 25 most expensive water systems were in California

More than half of the 25 most expensive water systems were in California

A striking new report from the national advocacy organization Food & Water Watch details the soaring cost of water in the largest water systems throughout the U.S. The comprehensive study tracks the change in water bills between 2015-2025 among the 500 largest systems in the country and shows an alarming trend contributing to the deepening affordability crisis in America.

Amidst a national trend of rapidly increasing bills, California emerged as a standout. The report finds four water systems in California rank among the top ten most expensive systems in the United States:

(1) San Jose Water Company (CA) 

(2) American Water – Huntington (WV)

(3) American Water – Kanawha Valley (WV) 

(4) Escondido (CA)

(5) American Water – Pittsburgh (PA)

(5) American Water – Lake Scranton (PA)

(5) American Water – West (PA)

(8) Aqua Pennsylvania (PA)

(9) Santa Barbara (CA) 

(10) Marin Municipal Water District (CA) 

Further, more than half (52%) of the 25 most expensive water systems were in California, while Californian systems represented just 18% of the 500 systems in the dataset. A corporate water system in San Jose, California had the most expensive water bills in the country – with a typical annual household water bill being $1,416 in 2025.

Among the study’s top findings:

  • Water bills have increased by an average of 62 percent for typical households over the last decade.
  • Water bills increased at 1.6 times the rate of inflation andmore than 2 times greater than the price of groceries over the last decade.
  • Corporate water systems charged 67 percent more than publicly owned systems in 2025, or an extra $329 a year on average.
  • Average households with public water service paid less in 2025 than those with privately owned service paid in 2015.
  • Water bills have increased 19 percent faster than median household incomes on average nationally over the last decade; in some states the increases far outpaced incomes.

“Across the country, a water crisis is quietly brewing. While struggling to afford all the basics, households are grappling with water costs that are growing faster than they can keep up with,” said Mary Grant, water policy director at Food & Water Watch. “Rampant corporate abuses of our water and federal disinvestment in aging systems are driving up water bills, forcing households to pick up the tab of this neglect. Policymakers must rein in corporate abuses, hold polluters accountable and provide dedicated funding for water. Everyone should have safe and affordable water.” 

The study compared 2025 water bills to those from our last comprehensive study of these systems in 2015. No federal agency or other government entity collects this information; no other publicly accessible resource holds this information.

Background: 

Several factors have likely contributed to the trend of California having some of the most expensive water systems in the country. Coastal cities in Southern California and the Bay Area that pay higher rates purchase their water (directly or indirectly) from the State Water Project, which pumps water through an extensive network of conveyance and storage infrastructure. 

In addition, California has been experiencing historic megadrought over the past decades like much of the American West. In face of this drought and water supply issues, some California water systems pursued costly alternative water supply projects like desalination and other energy-intensive processes that are used to extract, treat and move water, which translates into higher costs for utilities and ratepayers. 

This new analysis also comes as Californians are already facing the prospect of rapidly rising bills due to the expansion of data centers – which will continue to happen if state leaders don’t immediately pause the buildout of these facilities. 

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Press Contact: Madeline Bove [email protected]

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