Across 4,000 square miles of mountain watershed, four drinking water treatment plants and a 335-square-mile service area, Denver Water’s people work every day (and night) to ensure a clean, safe, reliable water supply for 1.5 million people. 

The work they do sustains Denver Water’s complex system, parts of which date back more than 100 years, and ensures the utility has the flexibility and resiliency needed to face the next century of challenges. 

“Our lives depend on water, and the mission of Denver Water is to ensure that our customers — 1.5 million people across Denver and surrounding suburbs — enjoy safe and reliable water service today and for the future. The system we have today is due to the foresight of Denver Water’s past leadership. In keeping with this legacy, we have a responsibility to be good stewards of this system and the water it provides, while keeping rates as low as good service will allow,” said Denver Water CEO/Manager Alan Salazar. 

Learn how Denver Water is investing in the system that supplies clean, safe drinking water to 1.5 million people every day.

Several large, pivotal projects will help Denver Water ensure a reliable and sustainable water supply system that about 25% of Colorado’s population depends on. 

• The new Northwater Treatment Plant, which began operations in 2024, can clean up to 75 million gallons of water per day and can be expanded when needed to 150 gallons per day. 
• The Lead Reduction Program, which started in 2020, is protecting customers from the risk of lead in their drinking water and to date has replaced more than 28,000 old, customer-owned lead service lines at no direct cost to customers. 
• The Gross Reservoir Expansion Project, expected to be complete in 2027, will nearly triple the reservoir’s storage capacity, allowing it to capture and hold more water when it is available, for use when it’s needed. (Read Denver Water’s statement on a recent court ruling here.) 

In addition to those generational projects, Denver Water also continues its ongoing work to maintain and upgrade the system, such as constantly monitoring the quality and safety of the water and replacing about 80,000 feet of water mains under city streets every year. 

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Denver Water expects to invest $1.8 billion over the next 10 years in projects that will maintain, repair, protect and upgrade the system and make it more resilient and flexible in the future. The utility is committed to ensuring the system can reliably deliver safe, clean and affordable water to its customers while mitigating the effects of the economy, from inflation to supply chain issues, on its costs. 

Those factors, along with a desire to encourage water conservation, keep essential indoor water use affordable and ensure the utility is financially stable, were incorporated into the Oct. 23 decision by Denver’s Board of Water Commissioners to approve new water rates for 2025. 

How the 2025 rates will affect individual customer bills will vary depending on where the customer lives (in Denver or in one of the utility's suburban distributor districts) and how much water they use. 

The utility does not receive tax dollars or make a profit. It reinvests money from customer water bills and fees to maintain and upgrade the water system. 

In addition to rates paid by customers, funding for Denver Water’s infrastructure projects, day-to-day operations and emergency expenses, like water main breaks, comes from bond sales, cash reserves, hydropower sales, grants, federal funding and fees paid when new homes and buildings are connected to the system.

And major credit rating agencies recently confirmed Denver Water’s triple-A credit rating, the highest possible, citing the utility’s track record of strong financial management. 

New rates for 2025

For typical single-family residential customers who receive a bill from Denver Water, if they use 104,000 gallons of water in 2025 as they did in 2024, the new rates will increase their monthly bill by an average of about $2 to $3 over the course of the year, depending on where the customer lives (in Denver or in one of the utility's suburban distributor districts) and the level of service they receive from Denver Water.

Monthly bills for single-family residential customers are comprised of a fixed charge, which helps ensure Denver Water has a more stable revenue stream to continue the necessary water system upgrades to ensure reliable water service, and a volume rate for the amount of water used.

The fixed monthly charge — which is tied to the size of the meter — is increasing by 66 cents in 2025, to $19.06 per month, for most single-family residential customers to ensure Denver Water is recovering 20% of its needed revenue from fixed charges.

How Denver Water cleans the water before delivering it to customers: 

After the fixed monthly charge, Denver Water’s rate structure for residential single-family customers has three tiers based on the amount of water used. The tiers are designed to keep essential indoor water use affordable while encouraging water conservation outdoors.

The first tier, which covers essential indoor water use for bathing, cooking and flushing toilets, is charged at the lowest rate. 

The amount of water in this first tier is determined for each customer by averaging their monthly water use as listed on bills dated January through March each year. This is called their average winter consumption.

Water use above the average winter consumption — typically used for outdoor watering — is charged at a higher price to encourage water-conservation best practices. The more water a customer uses, the more they will pay. 

Efficient outdoor water use is charged in the second tier (middle rate), followed by additional outdoor water use in the third tier (highest rate).

Bills in the summer months can be higher if customers use water to irrigate their outdoor landscapes. 

Denver Water also offers one-time payment assistance to customers who may qualify and partners with the Mile High United Way 2-1-1 Help Center. Its Customer Care representatives also can help customers navigate payment options and customers’ unique circumstances. The utility's Customer Care team can be reached via the denverwater.org/ContactForm or by calling 303-893-2444.

Get rebate information on water-saving devices and tips for saving water inside and outside at denverwater.org/Conserve. 

The difference in volume rates for customers who live inside Denver compared to those who live in the suburbs is due to the Denver City Charter (see Operating Rules), which allows permanent leases of water to suburban water districts based on two conditions: 1) there always would be an adequate supply for the citizens of Denver, and 2) suburban customers pay the full cost of service, plus an additional amount.

Denver Water also encourages customers to conserve water where they can indoors and out.

Finding and plugging leaks inside the home can be done year-round and the utility offers rebates for qualified water-saving toilets and sprinkler equipment. 

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Outside, Denver Water encourages customers to conserve water by remodeling unused areas of water-intensive Kentucky bluegrass into more diverse, water-wise ColoradoScapes that fit naturally into our semi-arid climate and are interesting to look at through all seasons. These drought-resistant and climate-resilient ColoradoScapes include tree canopies and plants that help maintain vibrant urban landscapes and benefit our communities, wildlife and the environment.

Using less water also means more water can be kept in the mountain reservoirs, rivers and streams that fish live in, and Coloradans enjoy. It also can lower monthly water bills, saving money.

In addition to rates paid by customers, funding for Denver Water’s infrastructure projects, day-to-day operations and emergency expenses, like water main breaks, comes from bond sales, cash reserves, hydropower sales, grants, federal funding and fees paid when new homes and buildings are connected to the system.

As an example, in 2022, Denver Water successfully sought $76 million federal funding to support the Lead Reduction Program. The money has allowed the utility to increase the pace of the replacement work, adding 3,000 to 5,000 lead service line replacements to the 2023 and 2024 work schedules, beyond the about 5,000 already scheduled for replacement during each of those years.

Note: An individual customer’s monthly water bill will vary depending on where they live in Denver Water’s service area (in Denver or in one of the utility's suburban distributor districts), the level of service they receive from Denver Water, and how much water they use:

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