Understanding Water Affordability in California: A System Cost Perspective

A new policy paper from CMUA called Understanding Water Affordability in California: A System Cost Perspective examines the key drivers that are increasing water system costs and explains why rate design alone is not enough to address the water affordability problem for households. A durable statewide affordability system will require ongoing state support, coordinated enrollment, sustained state and federal partnerships, and more, the paper finds.

This report explains why affordability pressures are increasing, the challenges beyond a utility’s control that drive up water costs, why local rate-based tools are constrained, and what durable, scalable solutions could look like in California. It is a reference tool for CMUA and its member agencies to support informed engagement with state partners, including the State Water Resources Control Board, the Department of Water Resources, and the California Legislature.