Residential drinking water bills increased 62% on average between 2015 and 2025, outpacing inflation, grocery prices and median household income, according to a new analysis from Food & Water Watch.

The report analyzed rates for the 500 largest U.S. community water systems, which collectively serve about 155 million people, or 45% of the U.S. population. The analysis calculated annual bills based on 60,000 gallons of household water use and excluded wastewater and stormwater charges.

The average annual drinking water bill was $531 in 2025, although costs varied widely among utilities. Hempstead, New York, had the lowest typical bill at $133, while San Jose Water Company in California had the highest at $1,416.

Food & Water Watch found that water bills increased 1.6 times faster than overall inflation from 2015 to 2025. Bills also increased 19% faster than median household income over the period.

The report attributed rising costs to factors including aging infrastructure, water quality requirements, climate-related challenges and reduced federal support for water infrastructure. It cited EPA estimates that drinking water systems will need $625 billion in upgrades over the next two decades to comply with existing water quality standards.

Affordability was a particular concern for lower-income households. The analysis found that water bills exceeded its affordability threshold for low-income households in 93% of the systems studied.