Water costs are rising faster than inflation — and sending bills soaring

Corpus Christi, Texas, is facing a water crisis after reservoirs dropped to just 10% capacity during its fourth consecutive year of drought. The city council approved nearly $500 million in emergency funding to accelerate a groundwater project, despite lacking permits, with residents facing potential rate doubles due to the financial strain. City manager Peter Zanoni stated the drought left officials with no choice but to act urgently. Across the U.S., water costs have surged twice as fast as inflation since 1998, according to Bureau of Labor Statistics data. Climate change is worsening the strain, as extreme weather—such as flooding and droughts—disrupts aging infrastructure and forces costly repairs. A 2019 Forest Service study warned that water demand could soon outstrip supply in nearly half of U.S. freshwater basins. In Asheville, North Carolina, Hurricane Helene in 2024 destroyed 3,000 feet of water pipes and contaminated reservoirs with sediment, cutting off water to over 100,000 people for 53 days. The city secured a $10 million EPA loan for repairs but now needs $250 million—five times its annual revenue—to upgrade systems and protect against future disasters. Spokesman Clay Chandler emphasized the need for federal grants, as rate hikes risk pushing water services out of reach for residents. Utilities nationwide are struggling to adapt, with climate-driven costs becoming a major financial burden. Megan Bondar, a water utility analyst at Bluefield Research, noted that extreme weather is now a leading factor in rising prices, a trend expected to worsen as global temperatures climb. While water has historically been affordable, aging infrastructure and unpredictable climate events are forcing rate increases and straining budgets.