Portland Water Treatment Plant Costs Climb Past $2.5 Billion, Completion Delayed 2 Years

City officials cite additional contracting, permitting and legal costs as well as rising labor and materials prices for the ballooning budget.

Published on Feb. 26, 2026

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The costs of Portland's new water filtration plant, one of the most expensive municipal projects in the city's history, will rise an additional $450 million, running the total to more than $2.5 billion. Completion of the Bull Run plant also will be delayed by two years, largely because the city had to pause construction while it faced an appeal from neighbors and other critics.

Why it matters

The controversial project has faced years of opposition from nearby residents and businesses over concerns about noise, air pollution, tree removal and wildlife impacts. The filtration plant is required by the federal government to remove the parasite cryptosporidium from the city's water supply, which has been an ongoing issue for many water systems that rely on surface water.

The details

City officials attributed the ballooning price tag to additional contracting costs incurred during the pause in construction, permitting and legal costs associated with the land-use approval process, as well as rising costs of labor and materials. The city is building the plant on 95 acres of city-owned property south of Oxbow Regional Park and has requested a 24-month extension from the Oregon Health Authority to provide filtered water, shifting the compliance deadline from 2027 to 2029.

  • In 2017, the U.S. Environmental Protection Agency and the Oregon Health Authority said the city had to start treating its water because cryptosporidium was showing up too often in the city's water samples.
  • In 2023, Multnomah and Clackamas Counties approved the city's land use permits for the filtration plant, but a group of neighbors and environmental/rural industry groups appealed Multnomah County's decision.
  • In January 2024, the Oregon Land Use Board of Appeals ruled that the county failed to determine whether plant construction would adversely affect the rural area's natural resources, ordering the conditional land-use application back to Multnomah County for further review.
  • In February 2024, the city paused construction, then restarted it last summer when the county reapproved the land use permits.
  • On February 17, 2026, the Oregon Land Use Board of Appeals issued a decision affirming the project's permits.

The players

Ting Lu

Portland director of public utilities.

Priya Dhanapal

Deputy city administrator of public works.

1000 Friends of Oregon

One of the groups that filed the land use appeals against the project.

Multnomah County Rural Fire Protection District No. 10

One of the groups that filed the land use appeals against the project.

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What they’re saying

“These are not hypothetical challenges. Filtration will address these risks directly and it will allow us to deliver safe, reliable driving water even as conditions change.”

— Priya Dhanapal, Deputy city administrator of public works (oregonlive.com)

What’s next

The state board's order is not final, and opponents could still appeal to the Oregon Court of Appeals.

The takeaway

The ballooning costs and delays of this critical water infrastructure project highlight the challenges cities face in navigating complex land use approval processes and rising construction expenses, all while ensuring safe and reliable water supplies for residents.