Division of Drinking Water

New Fees for Utah Public Water Systems

FY28 Fee Calculation

How much is my fee?

Review your system’s fee estimate. If you believe your system’s data or calculated fee is incorrect, contact us and we can review and resolve any discrepancies.

How your fee was calculated

We calculated your system fee by applying the $35 fee rate for the first 10 million gallons and then $0.0165 per each additional 1,000 gallons. The 2025 water use data reported to the Division of Water Rights shows the total gallons for each water system. If your water system did not report water use data to the Division of Water Rights, we assume your system used less than 10 million gallons per year and the flat rate fee is applied. The fee rate may have been lowered if your water systems filled out our Incentivization Survey.

Fee collection process and timeline

This annual fee will be rolled out using a staggered billing schedule to ensure efficient processing. We will categorize water systems into flat rate (cycle 1) and non-flat rate (cycle 2) billing cycles.

We will issue invoices at the start of each designated cycle, and your system will have 90 days to submit their payment. We will not collect any fees prior to July 1, 2027.

Notification and billing methods depend on your system's fee structure:

  • Flat-Rate Systems (Cycle 1): You will not receive an invoice. We will send an email reminder to the water system administrative contact with instructions on how to self-pay the flat fee ($25 or $35).
  • Non-Flat Rate Systems (by consumption) (Cycle 2): We will send a formal invoice detailing your specific fee calculated from your consumption data.

Billing schedule & cycle breakdown

Cycle Fee rroup Payment open Payment due
1 Flat Rate Systems ($25/$35) 7/1/2027 9/30/2027
2 Non-Flat Rate Systems (by consumption) 10/1/2027 12/31/2027

Accepted payment methods

  1. Online payment portal (strongly recommended): Secure payments can be made via electronic check or credit card. Electronic checks (ACH) are strongly preferred to keep DDW fees stable.
  2. Check by mail: Paper checks are accepted but require longer administrative processing times. Systems are STRONGLY encouraged to utilize the Online Payment Portal.

How to qualify for incentives in future fee cycles

If you currently do not qualify for an incentive this cycle but wish to inquire how to qualify for future years, refer to the information below or contact the Division of Drinking Water using the contact information provided on this website.

  • Compliance with system-specific sizing standards under Utah Code Section 19-4-114
    • Water Systems will need to report water use data including peak day demands for at least three years to the Division of Water Rights (DWRi)
    • After three years of data including peak day demands are submitted to DWRi, contact engineering staff to send you a draft of your standard for review.
  • Community Systems only
    • Water meters installed on each residential connection
      • Undergo a construction project to install meters on each connection.
    • Adoption of tiered water rates
      • Work with your water system’s city council or board to approve tiered rates.
    • A Drinking Water Master Plan no more than 10 years old
      • A Master Plan (or System Capacity and Expansion Report) documents a public drinking water system’s ability to meet current and future demands by evaluating sources, storage, pumping, distribution infrastructure, customer demand, hydraulic capacity, and planned system growth. For more detailed information see the rule reference.

If you have questions about the incentive criteria, please contact Dani Zebelean, P.E., at (385) 278-5110 or [email protected].

Governor’s Budget Released

The Governor’s Budget highlights a 50% reduction from the original proposed drinking water fee for Utah Public Water Systems.

Through budget cuts and reserve funding, the Division of Drinking Water has been able to reduce the proposed fee by half and delay the first fee collection until fiscal year 2028.

The public comment period gave crucial feedback in reexamining the best path forward. While a fee remains necessary to sustain the staff and programs required to maintain federal compliance and ensure safe, reliable drinking water, we revised our proposal in direct response to stakeholder input. We are thankful for the numerous people who attended the public meetings and for the nearly 100 comments submitted. They were carefully reviewed and instrumental in making these proposed changes.

We recognize that new costs can place a real burden on water systems and understand the need for additional time to plan for these changes. This fee is intended to reduce the state’s reliance on declining federal funding, diversify revenue sources, strengthen long-term resilience, ensure ongoing compliance with federal law, and maintain the level of service expected by Utah’s communities. For detailed information on the updated proposal and supporting documents, please see our FAQ document and continue exploring this site.

The Utah Department of Environmental Quality (DEQ), Division of Drinking Water (DDW), is implementing new fees for public water systems. These fees will provide stable funding for drinking water regulation and infrastructure projects, reducing reliance on expiring federal grants. Find out how these fees may affect your system and what’s next.

What you need to know

Who is affected?

All public water systems in Utah, including Community, Non-Transient Non-Community, Transient, and wholesale systems (for their retail water usage)

What type of fee?

An annual consumption-based fee. This fee is based on water delivered for human consumption and other domestic uses, including landscaping.

What are the rates?

  • Standard rate: $0.0165 for every 1,000 gallons of domestic water used.
  • Small system rate: A flat fee of $35 per year for systems using less than 10 million gallons annually.
  • If consumers use less water, your system will pay less.

When does the fee start?

The fee period officially begins July 1, 2026, with the first payments collected after July 1, 2027.

Exemptions and incentives

Exemptions

Certain water usage is exempt from the fee:

  • Water wholesaled to another public water system.
  • Water used only for agricultural purposes and not through a public drinking water system.
  • Water delivered to an end-user that is an industrial user.

For a complete list of all exemptions from the fee, refer to Section 5.4 of the full draft policy document.

Conservation incentives

An incentive program is in place to promote water conservation and can reduce your system’s fee by up to 10%.

For Community Systems, criteria include:

  • A current water master plan (no older than 10 years).
  • Tiered water rates.
  • Meters on all residences.
  • Compliance with system-specific sizing standards.

Timeline and how to get involved

We encourage your participation in upcoming events and feedback opportunities.

Submit your feedback

You can send us informal feedback on the draft policy now via our form.

Submit feedback
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Previous events

Keynote Presentation: Rural Water Association of Utah, Fall Conference

Drinking Water Director Nathan Lunstad, Ph.D., P.E. will deliver the keynote at the Rural Water conference, touching on the new fee proposal.

  • Date: Tuesday, August 26, 2025
  • Time: 11:30 a.m.
  • Location: The Davis Conference Center, Layton, UT
  • Full conference details

Official DEQ Fee Hearing

Attend DEQ’s official public fee hearing to submit official public comment on the proposed fee before it gets sent to the Governor’s Office.

Event recordings

Virtual info session–August 21, 2025

Timeline

  • Informal outreach in August: We will be conducting informal outreach and gathering input from water systems. This allows for potential minor adjustments before formal submission.
    • In-person meeting – August 18, 2025
    • Virtual meeting – August 21, 2025
  • September 1, 2025: The finalized fee schedule must be submitted to the Governor’s Office. No changes can be made after this date.
  • September 11, 2025: Formal DEQ Public Hearing for official public comment on all DEQ fees. This is a crucial opportunity to provide official feedback.
  • July 1, 2026: Official fee period begins.
  • July 1, 2027: First annual fee payments are collected.

Full policy

Find complete details in the Draft Fee Authority Policy Document, including full program costs, revenue assessments, and specific legal authority.