Rate Adjustments
Proposed Rate Changes Coming to Your Water Bill in 2027
The Court’s decision in Patz, et al. v. City of San Diego, 113 Cal. App. 5th 225 (2025), determined that the City’s current rate structure does not adhere to Proposition 218, and ordered the City to establish rates that comply. The City is now required by this court decision to develop and enact a unitary volumetric rate and updated fixed charges for all customers, resulting from changes in the approach to the volumetric commodity rates. The details on how these updated rates were developed can be found in the City’s most recent cost-of-service study, and the Water Memorandum Modifying the 2025 Water Cost of Service Study (Stantec Memo), linked below.
- San Diego Fiscal Year 2026 Water Rate Study Report
- Water Memorandum Modifying the 2025 Water Cost of Service Study (Stantec Memo)
To enact the unitary rate structure, the City has proposed a new rate structure, that San Diego customers will see reflected in their water bill beginning on Jan. 1, 2027. This new rate structure will impact how water rates are calculated, but not the service level or water quality you receive. We understand that changes to your bill matter, and we are committed to keeping you informed every step of the way. The City of San Diego is launching an outreach effort to inform customers and stakeholders throughout the rate setting process.
A public hearing is set for the water rate adjustments that will take effect on Jan. 1, 2027.
- Date: Oct. 6, 2026
- Time: 2 p.m.
- Location: Council Chamber, 202 C St., 12th floor, San Diego, CA 92101
How Will My Water Bill Change?
Today, the City uses a tiered water rate structure.
- That means all customers pay the same rate for water up to a certain use level.
- Customers who use more than that level pay a higher rate only on the additional water they use.
Starting in 2027, proposed rates will move to a unitary water rate structure as a result of the court ruling.
- This means all customers pay the same rate per unit of water, regardless of total consumption.
- There isn’t a cost difference for those who use more water or less water.
What is the Difference Between Tiered and Unitary Water Rates?
Unitary Water Rates
Water use has not changed
Meet Dustin
Higher Water Use
Meet Margaret
Lower Water User
Dustin and Margaret pay the same rate per unit of water, regardless of total water consumption.
Tiered Water Rates
Meet Dustin
Higher Water User
Dustin pays the same rate for water up to a certain level. He pays a higher rate only on the additional water he uses.
Meet Margaret
Lower Water User
Margaret pays the same rate for water up to a certain level.
Why is My Water Bill Changing?
A recent court decision (Patz v. City of San Diego) requires the City to change how water rates are structured. To comply with state law, the City must move to a unitary rate structure. This change impacts water agencies across the state, not just San Diego.
Proposition 218 Notice
Proposition 218 is a California law that limits how local governments can charge for property services and protects taxpayers by requiring that charges are directly tied to the services provided. The City of San Diego is required by the state of California to provide a Proposition 218 notice to all property owners in San Diego about proposed changes to property-related fees, like water services. Property owners can expect to receive the Proposition 218 notice in late July.
What Will My Water Bill Look Like?
Below are estimated monthly billing changes using a unitary water rate system. Rates depend on the size of the water meter, the type of property and other variables.
Water Commodity Rates
Customer Class | Bimonthly Tier Allotment (HCF) | Previously Adopted | Proposed | |
|---|---|---|---|---|
Single Family | Tier 1 ($/HCF) | 0 to 10 | $9.75 | 11.09 |
Tier 2 ($/HCF) | 11 to 22 | $10.88 | ||
Tier 3 ($/HCF) | Above 22 | $13.62 | ||
Multi-Family Residential ($/HCF) |
| $11.41 | ||
Commercial/Industrial/Outside City ($/HCF) |
| $10.72 | ||
Irrigation ($/HCF) |
| $12.08 | ||
Temporary Construction ($/HCF) |
| $12.46 | ||
Water Monthly Service Charge
Meter Size | Previously Adopted | Proposed |
|---|---|---|
5/8", 3/4" | $40.69 | $40.97 |
1" | $65.08 | $65.43 |
1.5" | $126.07 | $126.58 |
2" | $199.26 | $199.97 |
3" | $455.41 | $456.79 |
4" | $760.34 | $762.54 |
6" | $1,760.53 | $1,765.40 |
8" | $2,699.74 | $2,707.11 |
10" | $5,127.04 | $5,140.88 |
12" | $6,468.79 | $6,486.18 |
16" | $9,518.17 | $9,543.67 |
Fireline Monthly Service Charge
Meter Size | Previously Adopted | Proposed |
|---|---|---|
1” | $4.60 | $4.84 |
1.5” | $5.56 | $5.90 |
2” | $7.22 | $7.72 |
3” | $13.17 | $14.27 |
4” | $23.44 | $25.57 |
6” | $60.30 | $66.14 |
8” | $123.88 | $136.10 |
10” | $219.52 | $241.35 |
12” | $352.07 | $387.20 |
16” | $745.63 | $820.28 |
20” | $1,337.64 | $1,471.74 |
The Proposition 218 notice that will be mailed to all City water customers before the public hearing to inform them of the proposed rate increases.
Will the Water Rate Adjustment Impact Services?
This rate change does not impact water quality, reliability or customer service. Customers will continue to receive the same dependable service they rely on today.
How Can I Stay Informed?
The City of San Diego is launching an outreach effort to inform customers and stakeholders throughout the rate setting process.
Stay involved by:
Attending the public hearing
Date/Time:
Oct. 6, 2026 at 2 p.m.
Location:
Council Chambers
202 C St., 12th floor
San Diego, CA 92101
Reviewing your Proposition 218 notice when it arrives in the mail
Following @CityOfSanDiego on social media
Rates
Water Rates Effective Jan. 1, 2026
On Jan. 1, 2026, water rates will increase by 14.7%. This is the first adjustment approved by the San Diego City Council on Oct. 28, 2025. Also on Jan. 1, 2026, wastewater rates will increase by 6%. This is the first adjustment approved by the San Diego City Council on Oct. 28, 2025. These rates were approved to align with the current cost of services.
Water and wastewater fees help San Diego provide clean water and reliable wastewater services. Rising costs, especially for purchasing water from the San Diego County Water Authority, are the main reason for these rate increases. Additional funds support water storage, treatment and distribution, system operations and maintenance, and infrastructure.
The change to your City of San Diego Public Utilities bill will vary based on your account type (commercial, residential, etc.), the size of your water meter, your water usage, and your use of the wastewater system.
Below is the Proposition 218 notice that was mailed to all City water customers, informing them of the proposed rate increases. The notice has been translated into nine languages.
- Proposition 218 Notice - Water and Wastewater Rates
- Proposition 218 Notice - Water and Wastewater Rates (Arabic)
- Proposition 218 Notice - Water and Wastewater Rates (Dari)
- Proposition 218 Notice - Water and Wastewater Rates (Farsi)
- Proposition 218 Notice - Water and Wastewater Rates (Korean)
- Proposition 218 Notice - Water and Wastewater Rates (Simplified Chinese)
- Proposition 218 Notice - Water and Wastewater Rates (Somali)
- Proposition 218 Notice - Water and Wastewater Rates (Spanish)
- Proposition 218 Notice - Water and Wastewater Rates (Tagalog)
- Proposition 218 Notice - Water and Wastewater Rates (Vietnamese)
You can view the 2025 Water and Wastewater Cost of Service studies below.
Water Rates Effective May 1, 2025
On May 1, 2025, a pass-through rate adjustment from the San Diego County Water Authority (SDCWA) of 5.5% will go into effect to pay for increases in the cost of imported water supplies. The City currently imports as much as 90% of its water, which is purchased from SDCWA. Historically, SDCWA increases water rates annually. These increases are based on SDCWA costs for infrastructure, operations, maintenance and other costs required to obtain water on behalf of member agencies. SDCWA incorporates all its costs into its water charges, which are passed through to member agencies, such as the City of San Diego.
The City’s water rates approved by the City Council in September 2023 assumed a 2025 SDCWA rate increase of 7.2%, based on SDCWA’s rate projections at that time. Subsequently, on July 25, 2024, SDCWA adopted adjustments to the fixed and variable rates it charges the City of San Diego and other local water agencies. Ultimately, the SDCWA Board passed a rate increase of 14%. To maintain the financial stability of the City’s water utility and ensure adequate cost recovery, the City must adjust rates to account for increases in water purchase costs from SDCWA.
The 5.5% pass-through rate adjustment was approved by the City Council at a public hearing on March 4, 2025. Below is the Proposition 218 notice, which was mailed to all City water customers prior to the public hearing to inform them of the proposed rate increases. The notice has also been translated into nine languages.
Water and Wastewater Rates Effective Jan. 1, 2025
As of Jan. 1, 2025, water rates increased overall by 8.7%, and wastewater rates will increase overall by 3%. This is the third phase of the adjustments approved by the San Diego City Council on Sept. 21, 2021, and Sept. 19, 2023. The change to your City of San Diego Public Utilities bill will vary based on your type of account (commercial, residential, etc.), the size of your water meter and your water usage. We understand these increases may be challenging to afford. You may be interested in rebates available for certain water-saving devices. Visit our Water Conservation web page for more information.
Water and Wastewater Rates Effective July 1, 2024
As of July 1, 2024, water rates increased overall by 5.2%. This is the second phase of the adjustment approved by the San Diego City Council on Sept. 19, 2023. This includes a pass-through charge from the San Diego County Water Authority of 1.8% to pay for increases in the cost of imported water supplies and increased costs associated with other goods and services used to provide a reliable source of clean and safe drinking water. The increase will help the City continue to upgrade core infrastructure by replacing aging water and wastewater pipelines and fund investments like Pure Water. The change to your City of San Diego Public Utilities bill will vary based on your type of account (commercial, residential, etc.), the size of your water meter, your water usage, and your use of the wastewater system. We understand these increases may be challenging to afford. You may be interested in rebates available for certain water-saving devices. Visit our Water Conservation page for more information.
Water and Wastewater Rates Effective Dec. 1, 2023 and Jan. 1, 2024
As of Dec. 1, 2023, water rates increased overall by 5%. This is the first adjustment approved by the San Diego City Council on Sept. 19, 2023. This includes a pass-through charge from the San Diego County Water Authority of 3.6% to pay for increases in the cost of imported water supplies.
As of Jan. 1, 2024, wastewater rates increased by 4%. This is the third annual adjustment approved by the San Diego City Council on Sept. 21, 2021. These rates were approved to align with the current cost of services.
These increases will help the City continue to upgrade core infrastructure by replacing aging water and wastewater pipelines and fund investments like Pure Water. The change to your City of San Diego Public Utilities bill will vary based on your type of account (commercial, residential, etc.), the size of your water meter, your water usage, and your use of the wastewater system.
We understand these increases may be challenging to afford. The Low Income Household Water Assistance Program can help with past-due water and wastewater bills. Learn more at www.MAACproject.org/LIHWAP. You may also be interested in rebates available for certain water-saving devices. Visit Water Conservation for more information.
Water and Wastewater Rates Effective Jan. 1, 2023
On Jan. 1, 2023, a pass-through charge from the San Diego County Water Authority (CWA) of 2.5% went into effect to pay for increases in the cost of imported water supplies. The City currently imports as much as 90% of its water, which is purchased from CWA.
Also, wastewater rates increased by 4% on Jan. 1, 2023. The increase will help the City continue to upgrade core infrastructure by replacing aging pipes and wastewater mains and fund investments like Pure Water. The change to your City of San Diego Public Utilities bill will vary based on your type of account (commercial, residential, etc.) and your use of the wastewater system. Following a cost of service study on wastewater (sewer) rates, on Sept. 21, 2021, the City Council approved a four-year consecutive rate increase starting with 5% in 2022, up to 4% in fiscal years 2023 and 2024, and up to 3% in fiscal years 2025 and 2026.
Decreasing Your Water Usage
To decrease your water usage, you can use water more efficiently, repair leaks and ensure that you have the most efficient plumbing fixtures and toilets, washing machines, dishwashers and shower heads. The Public Utilities Department offers all kinds of tips, hints, programs and rebates to help you save water. For more information, visit: wastenowater.org.
Annually, from November through April, the City monitors the amount of water each customer uses for wastewater billing because that is when the highest percentage of water used is returned to the sewer system. The City monitors your water usage during two billing cycles and uses the total from the cycle with the least amount of usage to calculate your sewer rate. By conserving water during the winter monitoring period, you can lower your sewer rate during the following year.
Also, some San Diego residents may qualify for MAAC’s Low Income Household Water Assistance Program.
The City of San Diego requested authority to a pass-through charge from the San Diego County Water Authority (CWA) to pay for an increase in the cost of imported water rates up to 3% beginning Jan. 1, 2023.
The City currently imports as much as 90% of its water, the bulk of which is purchased from CWA. CWA considers rate adjustments every year and its board approved its next rate adjustment on June 23, 2022, effective Jan. 1, 2023. CWA rate study has cited changes in the cost of water importation and energy prices as the driving forces behind its rate adjustment.
Proposed water rate increases were presented to the City Council’s Budget and Government Efficiency Committee on June 22, 2022. The rate increase was approved by the City Council at a public hearing on Sept. 20, 2022.
Below is the Proposition 218 notice which was mailed to all City water customers to inform them of the proposed rate increases. There are also translations of the notice in five additional languages.
For the first time in 10 years, the City of San Diego increased wastewater rates, by 5%, starting in January 2022. In addition, a pass-through charge from the San Diego County Water Authority to pay for an increase in the cost of imported water increased water rates 3% beginning in January 2022.
The rate adjustment increases revenue 5% for sewer services and will help the City continue to upgrade core infrastructure by replacing aging pipes and sewer mains. It also funds investments like Pure Water, a landmark water recycling project that will increase the supply of local drinking water, avoid wastewater treatment cost increases and reduce discharges to the ocean.
The changes to water and sewer bills vary based on the type of account (residential, commercial, etc.) and the use of the wastewater system.
The City currently imports as much as 90% of its water, the bulk of which is purchased from the San Diego County Water Authority (CWA). While the costs of purchasing water from CWA have risen over the past several years, the City is passed on a rate adjustment for the first time in two years of approximately 3% starting in 2022. Water and sewer rates in San Diego are comprised of base fees and usage charges for various customer classes.
The City conducted a cost of service study on wastewater (sewer) rates to evaluate future revenue requirements for operating and capital costs. The study found that if the City’s sewer rates remain unchanged, there will not be enough revenue to provide necessary wastewater and recycled water services between fiscal years 2022 and 2025. As a result, Public Utilities proposed a four-year consecutive rate increase starting with 5% in 2022, up to 4% in fiscal years 2023 and 2024, and up to 3% in fiscal years 2025 and 2026.
Proposed water and wastewater rate increases were presented to the City Council’s Budget and Government Efficiency Committee on April 7, 2021.
On July 8, 2021, the City released an addendum to the cost of service study that incorporated all of staff’s recommended changes to the cost of service study, as presented to the Council's Budget Committee on June 23, 2021. The cost of service study with the addendum is the final document used to calculate the noticed proposed rate changes.
The City Council approved the rate increases on Tuesday, Sept. 21, 2021.
For more information:
- Water Bill Calculator
- Water and Wastewater Rate Increases Questions and Answers (English)
- Aumento de Tarifas de Agua y Aguas Residuales Preguntas y Respuestas (Español)
- Water and Wastewater Rate Increases Fact Sheet (English)
- Información sobre aumentos de tarifas de agua y aguas residuales (Español)
Below is the Proposition 218 notice which has been mailed to all City water and wastewater customers to inform them of the proposed rate increases. There are also translations of the notice in five additional languages.
- Proposition 218 (English)
- Proposition 218 (Spanish)
- Proposition 218 (Tagalog)
- Proposition 218 (Vietnamese)
- Proposition 218 (Chinese)
- Proposition 218 (Somali)
Public Forums
In order for the public to have opportunities to receive answers to questions about the proposed rate increases, several community forums were held virtually during the months of July, August and September 2021. Answers to many of the questions asked at the forums are provided in the linked document below. Also, click to watch a recording of the Sept. 2, 2021, public forum provided in English and Spanish.
- Questions and Answers from Recent Public Forums - Revised Sept. 8, 2021
Recording of Sept. 2, 2021, Public Forum
Additional Documents Concerning the Wastewater Cost of Service Study
Frequently Asked Questions
What does my water bill pay for?
Making sure San Diegans have clean water is expensive, partly due to the local, state and federal regulations the City must follow. Approximately 40% of the Public Utilities’ Fiscal Year 2026 Budget is expected to go toward the purchase of imported water and the remaining 60% of the Department’s budget will pay for maintenance, upgrades and debt service for the City’s water system. Updating and maintaining our vast water delivery system is essential for the City to continue bringing clean water to our 1.4 million residents while maintaining strict quality standards.
How can I find out how much water I use?
Learn how to read your water meter and find out your water usage.
How can I get assistance with paying my water bill?
The City's Public Utilities is willing to work with customers to help pay their bills. Please call 619-515-3500 between 8 a.m. and 5 p.m., Monday-Friday.
How is my sewer charge calculated?
For single-family residential customers, an individualized flat sewer rate is determined based on the amount of water used during the previous winter. Learn more on how this is calculated. For all other customers, the sewer rate is based on water usage.