Denver Water Implements Drought Charges for 1.5 Million Customers

Higher rates aim to curb outdoor water use as Colorado faces record-low snowpack and widespread drought

Apr. 8, 2026 at 6:20pm

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A minimalist illustration featuring overlapping triangles and rectangles in shades of blue, representing the concept of water scarcity and drought pricing without any text or literal imagery.Denver Water's drought pricing aims to curb outdoor water use and maintain the utility's financial stability during a severe statewide drought.Denver Today

Denver Water, Colorado's largest water utility, is implementing drought pricing for its 1.5 million customers starting in May 2026. The utility will charge higher rates for water usage that exceeds each household's average indoor winter usage, with the goal of reducing outdoor water consumption. Customers who cut usage by 20% could see their annual bills rise by about $30, while those who don't reduce usage could face $45 increases.

Why it matters

Denver Water's drought pricing is a response to record-low snowpack and severe drought conditions across Colorado. The higher rates are intended to encourage water conservation and offset lost revenue from lower usage, helping ensure the utility's financial stability during the drought.

The details

Under the new drought pricing, Denver Water residential customers will pay an additional $1.10 per 1,000 gallons used in Tier 2 and an additional $2.20 per 1,000 gallons used in Tier 3. The utility has also implemented Stage 1 drought restrictions, limiting outdoor watering to twice per week. Denver Water estimates a family that reduces usage by 20% will see about a $30 annual bill increase, while those who don't cut back could face $45 higher bills.

  • Denver Water's board voted to implement the drought pricing on April 8, 2026.
  • The higher rates will go into effect in May 2026 and remain in place until April 2027.

The players

Denver Water

Colorado's largest water utility, serving more than 1.5 million people across the Denver metro area.

Alan Salazar

CEO of Denver Water.

Angela Bricmont

Chief Financial Officer of Denver Water.

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What they’re saying

“Drought charges signal to our customers the premium value of water in a drought, while exempting essential indoor water use.”

— Alan Salazar, CEO, Denver Water

“We have tools to address reduced revenue and ensure the organization maintains its financial foundation for when this drought is over.”

— Angela Bricmont, Chief Financial Officer, Denver Water

What’s next

Denver Water will continue to monitor the drought situation and may adjust the pricing or restrictions if conditions worsen or improve.

The takeaway

Denver Water's drought pricing is a proactive measure to encourage water conservation and maintain the utility's financial stability during a severe drought. The higher rates aim to curb outdoor water use, which is a major driver of increased consumption, while exempting essential indoor usage.