Denver Water customers across the metro area's suburbs will pay more starting Jan. 1, 2027, after the utility's board approved new rates in response to what it calls one of the worst droughts in a century.

Denver's Board of Water Commissioners voted unanimously Wednesday, Oct. 28 to approve 2027 water rates, drought rates and a higher monthly fixed service charge. A typical single-family home using 104,000 gallons per year will see monthly bills rise by about $3.25 to $4.50 over the course of the year, depending on whether the customer lives in Denver or in one of the utility's suburban distributor districts, according to Denver Water's rate announcement.

Denver Water serves 1.5 million people. Some residents in the Centennial area may be served through the utility's suburban distributor districts, though Denver Water's announcement does not name specific communities. Customers can check their provider on their monthly bill.

Where the money goes

The biggest price increase targets outdoor water use. In 2027, the cost of Tier 2 outdoor water will be 2.5 times higher than Tier 1 indoor use. Tier 3 will be 3.5 times higher.

The board raised the fixed monthly charge by $4.81, to $25.72 per month for customers with a 3/4-inch meter, the most common residential size. Denver Water said the higher fixed charge will reduce seasonal swings in customer bills and stabilize revenue.

The cost of essential indoor water use will drop in 2027, according to Denver Water. The utility said the move keeps drinking, cooking and hygiene water affordable.

"We all have a shared responsibility to ensure the system stays strong and resilient, because while this is one of the worst droughts Denver Water has experienced in the last 100 years, we know it won't be the last," Alan Salazar, CEO and manager of Denver Water, said in a statement on the utility's website.

Salazar added that the utility needs to ensure 1.5 million customers have access to safe, affordable, clean water as the climate warms.

Drought surcharges and enforcement

The board set drought surcharges for 2027. Under two-day-per-week watering restrictions, drought rates would add $1.40 per 1,000 gallons for Tier 2 use and $2.80 for Tier 3. If restrictions tighten to one day per week, those surcharges jump to $2.60 and $5.20 per 1,000 gallons.

Drought rates stack on top of regular water rates.

Denver Water is also pushing stricter enforcement. The utility proposed hiring 15 temporary staff at $25 an hour for summer 2027 to patrol for watering violations, The Colorado Sun reported. After a hard Oct. 1 cutoff on all lawn irrigation, residential customers caught watering faced a $500 fine for the first violation and $1,000 for additional violations. A Denver Water spokesperson told The Colorado Sun that from Oct. 1 through Oct. 18, the utility issued 448 fines totaling $265,000.

Denver Water does not receive tax dollars and does not make a profit, according to its website. Customers who need help with bills can contact Denver Water's Customer Care team at 303-893-2444.