US drinking water costs soar past inflation as private firms face scrutiny

US households are paying 62% more for drinking water than they did a decade ago, a new study reveals.

Rising Costs

Food & Water Watch analyzed 2025 billing data from the 500 largest community water systems in the country, serving about 155 million people. In 2025, the average household using 60,000 gallons of water paid $531 for drinking water service. Water prices rose 1.6 times faster than general inflation, outpacing increases in grocery prices and household incomes over the same period. The increases varied widely by state, with New Hampshire bills jumping 177%, Oregon up 114%, and West Virginia rising 95%.

Private Vs Public

Corporate-owned utilities charged the average household $823 a year, compared with $494 for publicly owned systems, marking a 67% difference. While corporate systems made up only 11% of the analyzed utilities, they accounted for 44% of the 25 most expensive systems. Mary Grant, the study's co-author, blamed corporate abuses, federal disinvestment, and climate change for driving up rates. Industry groups like the American Water Works Association and the National Association of Water Companies pointed instead to aging infrastructure, strict safety regulations for lead and PFAS, and severe weather as vital cost drivers.

Context

Community water systems across the United States face massive financial pressures to replace old lead pipes and treat chemical contamination while adapting to a changing climate. Managing these huge infrastructure updates creates difficult choices for local leaders balancing necessary safety upgrades against the rising cost of living for everyday families.