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April 8, 2026
Denver Water’s collection and service areas continue to face severe drought conditions, with historically low snowpack and concerns about the diminished spring runoff that will be available to meet customer’s water needs in the future.
As a result, at its meeting today, the Denver Board of Water Commissioners adopted a resolution approving the implementation of temporary drought pricing on outdoor water use. The drought pricing will apply starting with May water use (reflected in June bills) and will be in effect through April 30, 2027, or until further action by the board.
Under the temporary drought pricing, residential customers will see a drought charge on Tier 2 water use of $1.10 per 1,000 gallons. Tier 3 will have a drought charge of $2.20 per 1,000 gallons. The temporary drought charges will be added on top of the customer’s existing 2026 water rates.
Tier 1, which covers essential indoor water use, is exempt from drought pricing.
“Implementing temporary drought pricing is not a step we take lightly. It is one of many tools Denver Water has available — when needed — to respond to drought conditions, encourage customers to conserve our water supply, and ensure our ongoing ability to operate and maintain the system that delivers clean, safe water to 1.5 million people,” said Alan Salazar, Denver Water’s CEO/Manager.
“Drought charges signal to our customers the premium value of water in a drought, while exempting essential indoor water use. We haven’t needed to use this tool in more than 20 years — since the historic drought of 2002-04 — and conditions surrounding this year’s snowpack and potential runoff are shaping up to rival, and possibly be worse than, those years,” Salazar said.
Under the temporary drought pricing approved by the board, for Denver Water residential customers in Denver and the suburbs:
- e first tier will be exempt from the temporary drought charge. This tier is charged at the lowest rate and covers essential indoor water use for bathing, cooking and flushing toilets. Each customer has their individual first tier determined by the average of their monthly water use as listed on bills that arrive in January, February and March — when there is very little or no outdoor watering.
- The second tier will have a temporary drought charge of $1.10 per 1,000 gallons added on top of their 2026 water rates. This tier is for water consumption, typically used for outdoor watering, that is above the customer’s first tier and up to 15,000 gallons of water per month. Water use in this tier is considered to be an efficient use of water outdoors.
- The third tier will have a temporary drought charge of $2.20 per 1,000 gallons of water added on top of their 2026 water rates. Tier 3 is for water use above the second tier each month. It is priced at the highest level to signal potentially excessive water use and encourage conservation efforts by larger-lot customers.
The board’s decision to impose temporary drought charges on outdoor water use follows its March 25 declaration of Stage 1 drought. The declaration seeks a 20% reduction in water use effective immediately, with the goal of preserving water supplies and to help avoid the need for Denver Water to take further actions later this summer if conditions don’t improve. Read the March 25, 2026, drought declaration.
The snowpack, which supplies the water Denver Water captures, stores, treats and delivers to customers, is at historically low levels despite recent storms that brought some much-needed precipitation to the mountains and city last week.
“We welcome the storms that do come, while knowing that this year’s snowpack is at historically low levels and hopes for a Miracle May snowstorm are dimming. And Denver Water has made a number of tools available to help customers reduce their water use — whether it’s a normal year or a drought year. We encourage our customers to take steps to conserve water for this drought and be better prepared to manage through future dry times,” Greg Fisher, Denver Water’s manager of demand planning and efficiency.
Denver Water’s temporary drought pricing charges a premium for outdoor water use and covers several classes of customers, including residential, large irrigation, wholesale and raw water customers. (See the chart at the bottom of this story for additional information on nonresidential customers.)
An individual residential customer’s monthly water bill will vary depending on where they live in Denver Water’s service area (in Denver or in one of the utility’s suburban distributor districts) and how much water they use. Drought charges are expected to incentivize customers to reduce outdoor water use.
The following two charts illustrate the potential impact of the temporary drought charges on an annual water bill for residential customers living inside the city of Denver and, below that, in a Total Service suburban distributor district.
In these charts, the categories are:
- “Super conserver”: A customer who has very little outdoor water use, maybe only watering trees and shrubs throughout the year.
- “Good conserver”: An average customer who reduces their annual water use by 20%, from 104,000 gallons (the average use by residential customers in an average year) to 82,000 gallons.
- “Non-conserver”: An average Denver Water residential customer who uses 104,000 gallons of water over the course of the year (the average use by residential customers in an average year) and doesn’t respond to Denver Water’s call to reduce water use by 20%.
- “High user”: A customer in the top 25% of residential water users.
The following chart illustrates temporary drought charges impacts for residential customers who live in one of Denver Water’s Total Service distributor districts in the suburbs. (Learn more about Denver Water’s suburban customers.)
“This is not Denver Water’s first drought. We know our customers strive to be efficient in their water use, and we know we are asking them to use less to stretch the water supplies we have in this drought. We also know that success in reducing water use will result in reduced revenue for our organization. We have tools to address reduced revenue and ensure the organization maintains its financial foundation for when this drought is over,” said Angela Bricmont, Denver Water’s chief financial officer.
If customers comply with Denver Water’s request to reduce water use by 20%, the utility estimates 2026 revenue to fall by a commensurate amount. While drought pricing can offset a portion of that reduction, the utility will rely on cash reserves and budget reductions to cover the majority of the gap.
Denver Water has proactively reduced its spending, taking steps that include enacting a hiring freeze and reviewing maintenance and other projects to see which ones could be deferred.
To help customers Use Only What They Need indoors and outdoors, Denver Water offers a range of tools, including:
- Information for finding and fixing leaks inside the home.
- Rebates for low-flush toilets and water-efficient sprinkler nozzles.
- A limited number of discounts on Resource Central’s water-wise gardens and turf removal services (currently waitlisted).
- Free workshops (in-person and online) to help customers remodel their landscapes.
- Free DIY Landscape Transformation Guide and YouTube video series.
- Landscape Transformation Assistance Program that can help fund projects for larger HOA, commercial and public spaces.
Additional information and tips are available on our conservation website.
Temporary drought charges for nonresidential customers:
