Water Authority Board Approves 2027 Wholesale Rates

Water Authority Board Approves 2027 Wholesale Rates

June 25, 2026

Water transfers and other measures keep increase below rate of inflation

The San Diego County Water Authority's Board of Directors today approved a 3% wholesale water rate increase for 2027 following a public hearing. The approved rate is below the national rate of inflation and down sharply from both earlier projections and recent years, highlighting the bottom-line benefit of two long-term water transfer agreements executed this spring.

"This is the lowest adjustment this Authority has brought forward in recent memory, and it is materially lower than what was projected last year and even several months ago," said Water Authority Board Chair Nick Serrano. "This is the product of all the work this agency has done to prioritize affordability for ratepayers and reduce financial pressures across San Diego County. The Water Authority will continue to keep its word on finding creative solutions to support the financial well-being of the 3.3 million residents, thousands of small farms, and countless businesses across San Diego County."

After ending litigation with the Metropolitan Water District in June 2025, the Water Authority spent the past year rebalancing its water portfolio. That led to two water supply agreements with Riverside County water agencies that will generate hundreds of millions of dollars in revenues over the next two decades. These agreements were key to keeping the 2027 rate increase at 3%, with similar adjustments expected through 2032.

The Water Authority sets wholesale water rates annually, while providing periodic guidance to its retail member agencies about future years so they plan accordingly. The cost of water at the tap is a combination of costs from wholesale and retail water agencies. Homes and businesses feel the impact of rates differently, based on their water use and how local retail water agencies handle costs.

"Smooth and predictable rate increases ensure the Water Authority can provide the water we all depend on," said Dan Denham, Water Authority General Manager. "I'm pleased to keep this rate increase under the rate of inflation, and the Water Authority will continue to assess opportunities for mutually beneficial partnerships with other communities in the years ahead."

As the region's wholesale water agency, 91% of the Water Authority's costs are driven by just three things: water purchases and treatment, debt service, and infrastructure projects to ensure the reliability and safety of water deliveries. Continued efforts to protect regional infrastructure investments are crucial in an era of increasing climate volatility that's impacting water sources throughout the West.

To balance affordability and reliability, the Water Authority is breaking new ground in water management. The agency recently signed a memorandum of understanding with the U.S. Bureau of Reclamation, the Metropolitan Water District of Southern California, and agencies in Arizona and Nevada designed to create an interstate water transfer partnership program. This program - the first of its kind - would offer another way to improve water supply management and support local ratepayers.