As Denver Water weighs new drought pricing, homeowners and businesses in the area are bracing for higher water bills, in some cases, as much as an additional $2.20 for each 1,000-gallon increment over the average winter consumption.

The Denver Water Board of Commissioners will vote on the matter on Wednesday. If approved, the new pricing model will be effective June 1, 2026, until April 30, 2027 — or until further action by the Board.

Officials have stated in public documents that the price bump is meant to reinforce the recently implemented Stage 1 Drought Response, which targets a 20% water reduction among users.

The proposed 11-month tiered drought pricing, according to officials, is designed to incentivize water-use reductions by encouraging less water consumption and ensuring “that higher-usage customers pay more.” 

Water restrictions are necessary to preserve reservoir storage until the levels can return to normal.

“Current conditions indicate that this is going to be an exceptionally challenging year for our water supply,” Nathan Elder, Denver Water’s manager of water supply, said in March after the drought restrictions were announced. “Snowpack levels are at historic lows, and they’re melting earlier and more rapidly than normal.”

“We’re 7 to 8 feet of snow short of where we need to be,” Elder said. “It would take a tremendous amount of snow to recover at this point, so it’s time to turn our attention to preserving what we have.”

While the goal of drought pricing is “to incentivize water conservation,” Denver Water officials estimate it will generate approximately $29 million more in revenue.

Estimates are based on drought numbers and could fluctuate as customer demand evolves over time.

If approved, drought pricing would not apply to residential essential water use or commercial winter water use, and would apply only to outdoor watering in Tiers 2 and 3.

Proposed residential drought pricing

Residential drought charge	Drought charge per 1,000 gallons
Tier 1: Average Winter Consumption	0.00
Tier 2: AWC + 15,000 gallons	$1.10
Tier 3: Greater than AWC + 15,000 gallons	$2.20

Proposed nonresidential drought pricing

Rate Class	Drought charge per 1,000 gallons
Nonresidential	Tier 2: $1.10 Tier 3: $2.20
Irrigation	Winter: $1.10 Summer: $2.20
Wholesale treated	$1.65 on demand over winter average
Raw water	$0.25
City and County of Denver Domestic	$0.55 on demand over winter average
City and County of Denver Irrigation	$0.55 on summer irrigation

Drought charges will be added to existing rates and apply to the entire service area, inside and outside the City and County of Denver.