San Antonio Water Rates Remain Stable, Potential Adjustments Loom in 2026
San Antonio residents can expect to continue paying the same rates for water and wastewater services for the near future, but a potential rate adjustment is being considered for 2026 as the city’s utility faces increasing financial pressures. The San Antonio Water System (SAWS) Board of Trustees approved an interim 2026 budget in November, deliberately postponing a decision on rate adjustments to allow newly appointed board members and City Council members time to fully understand the utility’s financial priorities.
SAWS leaders have already initiated a comprehensive cost-of-service study, the results of which are anticipated to inform a formal rate-setting process in the first half of 2026. This study will be crucial in determining the financial needs of the utility and justifying any proposed changes to customer bills.
Notably, SAWS residential and commercial rates have remained unchanged since 2020. In a surprising move, a rate restructuring implemented in 2023 actually lowered water and sewer charges for the majority of residential customers. This occurred despite significant headwinds, including disruptions to the COVID-19 supply chain, new legislative requirements stemming from the 2021 Winter Storm Uri, and widespread inflation impacting the cost of materials and construction. SAWS also continued to fund vital need-based assistance programs for qualifying customers during this period.
Factors Driving the Potential 2026 Rate Adjustment
Several converging factors are placing a strain on SAWS’s budget, necessitating a potential rate adjustment. Aging infrastructure requires substantial investment for repair and replacement, while ongoing drought conditions demand proactive water management strategies. Furthermore, evolving legislative requirements add to the financial burden.
According to SAWS officials, a rate adjustment in 2026 would be strategically allocated to critical areas, including significant upgrades to wastewater treatment plants and the essential repair and replacement of aging pipelines. These investments are vital to ensuring the long-term reliability and sustainability of San Antonio’s water system.
What to Expect in the Rate-Setting Process
The timeline for the potential rate adjustment is clearly defined. Once the cost-of-service study is finalized in early 2026, SAWS leadership will determine the specific amount of any proposed adjustments to water and wastewater rates. These proposals will then be presented to the SAWS Board of Trustees for their consideration and approval.
If the SAWS Trustees approve the rate proposal, it will subsequently be forwarded to the San Antonio City Council for thorough deliberation and a final vote. Should the City Council approve the new rates, they are expected to take effect in the first half of 2026.
For residents seeking the latest updates on the SAWS rate process, the utility encourages following @mySAWS on Facebook, Instagram, and X (formerly Twitter), or visiting the dedicated website at saws.org/rates2026.
