Desert Water Agency customers to see rate changes in 2027; how much could bills increase?

Raymond Kalra

PALM SPRINGS, Calif. (KESQ) – Water bills are going up for Desert Water Agency customers starting January 1, 2027, and some Coachella Valley residents are already raising concerns about what another increase could mean for their household budgets.

The agency says the upcoming rate adjustments will result in an average 6.25% increase, with the additional revenue helping cover aging infrastructure, rising operational expenses and improvements to the region’s water system.

But for some residents, the question isn’t just how much more they’ll pay. It’s why their bills keep increasing.

“I’d like to know why. And I’d like to understand why the service charge is so hard, is so high. It just. It doesn’t make sense to me as a consumer,” said Kenneth Morris, a local resident.

Morris told News Channel 3 he is already paying significantly more in fixed service fees than he is for the water he actually uses.

He questioned why those fees are necessary, particularly as the cost of other everyday expenses continues to rise.

“It’s crazy. I mean I mean I don’t understand how it could be like 4 or 5 times what the, the actual charge for the water is. So it’s offensive really,” Morris said.

How much more will customers pay?

According to Desert Water Agency, the upcoming adjustments are part of a previously approved five-year rate plan.

Victoria Llort, the agency’s Director of Public Affairs and Conservation, told News Channel 3 that the average water customer will see an increase of approximately 6.25%.

For customers with a standard residential water meter, the fixed monthly service charge will increase by $2.70, from $43.27 to $45.97.

The charge for water consumption will also increase by 17 cents per unit, from $2.75 to $2.92.

One unit of water equals 748 gallons.

That means the total increase will vary depending on how much water a household uses.

What could this mean for the average household?

Using an illustrative single-family household consuming 26 units of water each month, or approximately 19,448 gallons, here’s how the changes would affect its monthly water service charges:

Water service 2026 2027 Fixed monthly charge $43.27 $45.97 Water usage (26 units) $71.50 $75.92 Total $114.77 $121.89

For a household using that amount of water consistently, the increase would total approximately $7.12 more per month, or $85.44 over a full year.

Actual bills will vary depending on water consumption, meter size and additional charges. The example does not include wastewater fees, taxes or other applicable assessments.

Why is Desert Water Agency increasing rates?

Llort says the adjustments are necessary to keep up with the growing costs of operating the water system.

“Our fixed costs represent essentially ongoing system maintenance, the infrastructure, our aging pipelines, also the increased cost of supplies due to inflation and everything of that nature,” Llort explained.

According to the agency, the additional revenue will support ongoing operations, infrastructure replacements and compliance with state regulations.

DWA is also working on long-term capital improvement projects involving water pipelines, wells, booster systems and emergency water storage.

Llort says many of those improvements involve infrastructure that customers rarely see but depend on every day.

The agency also maintains that, as a public water provider, it cannot collect more revenue than the cost of providing its services.

DWA says its rate structure is informed by an independent cost-of-service study that evaluates the expenses associated with maintaining and delivering water.

The agency’s Board of Directors approved the latest phase of the five-year rate plan on June 16, 2026. The original plan was approved in 2023.

Residents raise concerns about affordability

While DWA says the additional funding is necessary to maintain reliable service, some residents are questioning how much more households can reasonably afford.

James Simpson told News Channel 3 that people living on fixed incomes could be particularly affected by continued increases.

“My thought is many people are on fixed income, Social security retirements that don’t always go up each year,” Simpson said.

Simpson believes utility increases should better reflect the financial circumstances of residents, particularly retirees whose incomes may not increase at the same pace as their expenses.

Morris also expressed concerns about the cost of living for seniors, telling News Channel 3 that expenses such as health insurance have become increasingly difficult to manage.

News Channel 3 asked DWA directly how the agency responds to customers who say they cannot afford another utility increase.

Llort said the agency recognizes those concerns and offers programs designed to help qualifying households manage their bills.

Financial assistance available for customers

DWA offers a financial assistance program called Help2Others, administered in partnership with Inland SoCal United Way.

The program provides eligible customers with a one-time $300 credit toward their water bill within a 12-month period.

According to Llort, the credit could cover several months of water expenses, depending on a customer’s typical monthly bill.

The agency also offers payment plans for customers experiencing financial difficulties.

Llort encouraged residents dealing with unexpected expenses, including water leaks that result in unusually high bills, to contact DWA directly to discuss possible assistance.

Customers can learn more about available programs through the Desert Water Agency website.

Another rate increase is planned for 2028

The upcoming January adjustment will not be the final increase under the agency’s existing rate plan.

Llort confirmed that another increase is scheduled for January 1, 2028.

Under the published rate schedule, the fixed monthly charge for a standard residential water meter would rise again, from $45.97 to $48.84.

The water consumption rate would also increase from $2.92 to $3.10 per unit.

Llort said customers who want to voice concerns about future rates can participate in the agency’s public board meetings.

The Desert Water Agency Board of Directors meets on the first and third Tuesday of each month at 8 a.m.

Meetings take place at the agency’s headquarters at 1200 South Gene Autry Trail in Palm Springs, with options for virtual participation.

Residents can find meeting information, agendas and details about the agency’s rate structure at www.dwa.org.

A separate water-related tax is decreasing

While water service rates are increasing, DWA says property owners within its service area will see a decrease in the State Water Project property tax rate.

According to Llort, that rate is being reduced from six cents to five cents per $100 of assessed property value.

The tax helps support California’s State Water Project, which transports water from Northern California to Southern California.

The reduction is separate from the agency’s monthly water service charges and does not eliminate the upcoming increase on customers’ water bills.

For now, residents like Morris are hoping the agency will provide clear explanations about why their costs continue to rise.

The new drinking water and wastewater rates take effect January 1, 2027, with the changes expected to appear on February bills.

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