Proposed 2026 rates will finance needed repairs and upgrades to our city’s aging water and wastewater system
Investment in maintaining San Antonio’s wastewater treatment system and proactive pipe replacement leads the list of reasons San Antonio Water System’s budget includes a rate adjustment for 2026, helping ensure dependable water service to all customers for decades to come.
This proposal is SAWS’ first residential water and sewer rate increase since 2020. In fact, SAWS lowered bills for most residential customers in 2023 after restructuring rates to make services more affordable for our most vulnerable citizens.
After keeping rates stable through extended drought, COVID-19, winter storms, inflation and costly federal mandates, a rate adjustment is needed for upgrades to aging wastewater treatment plants, adding backup power to water pump stations, and proactively replacing outdated water and sewer pipes — about $3.2 billion in improvements.
In 2025, SAWS hired Carollo, a leading water utility consultant, to conduct a cost-of-service study. The aim was to determine how much customer revenue was needed to continue meeting SAWS’ financial obligations. SAWS staff used the results to create a rate plan to meet those needs.
None. Initial plans for Project Marvel could require relocation of the SAWS cooling plant on E. Commerce Street that provides chilled water for air conditioning to downtown buildings. Since that is a completely separate utility, no water or sewer rates are used to fund it — now or in the future. Any relocation costs would be paid by customers of that service (hotels, Convention Center, Alamodome) or another funding source yet to be determined.
SAWS has worked diligently to become more efficient over the past 20 years. In fact, in 2012 SAWS took over the former Bexar Metropolitan Water District — a utility the size of Corpus Christi — without adding a single employee. In recent years, SAWS has benchmarked against similar city-owned utilities and consistently ranks in the top three nationwide.
SAWS will still have the second-lowest residential water bill among major Texas cities.
