New Fees for Utah Public Water Systems

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.

• Proposed Fee Town Hall Questions & Answers

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

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.

Previous events

Event recordings

Virtual info session–August 21, 2025

• Meeting recording, transcript, slides, notes & links shared

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.