Notice of Intent to Adjust Water Rates and Fees

Effective August 4, 2025, new water rates will go into effect.

  • Differential Water Rates for customers located in unincorporated Pima County
  • Water Conservation Fee for all Tucson Water customers
  • Green Stormwater Infrastructure (GSI) Fee for Tucson Water customers located within the City of Tucson

Watch a summary of the proposed rate adjustments from Tucson Water director, John Kmiec.

Adopted Differential Water Rates

Tucson Water will adopt differential water rates for customers who live outside the city limits in unincorporated Pima County. While 28% of Tucson Water customers live outside city limits, they require 36% of the water distribution infrastructure.

  • It is more expensive to provide water service to areas outside of Tucson due to wider service areas and higher peak usage demands.
  • These extended service areas require larger and more complex infrastructure, leading to higher operations and maintenance costs.
  • Currently, City of Tucson residents share in the costs of serving these areas, including infrastructure investments and associated risks.

To address this imbalance, a differential rate structure was adopted. Customers in unincorporated Pima County will pay 19% more than customers within city limits. The range is based on the widely used Utility Basis Model for cost appropriation. More information about this financial model can be found in the links at the bottom of this page.

  • This approach is:
  • Legal – supported by Arizona state law and upheld by the Arizona Supreme Court.
  • Standard practice – most major Arizona cities, including Phoenix, have similar structures--Phoenix charges up to 50% more for outside-city customers.
  • Revenue neutral – this change does not generate profit but helps ensure costs are shared fairly.

Rates for incorporated customers include customers that live in the City of Tucson, South Tucson, Marana, and Oro Valley in addition to the Pascua Yaqui and Tohono O’odham nations. The differential rate change will take effect in August 2025 concurrently with a planned 5.5% water rate adjustment that was originally scheduled for July 2025. 

Adopted Fee Adjustments

The City of Tucson also adopted adjustments to two important program-related fees:

Water Conservation Fee

  • New Fee: $0.15 per Ccf (hundred cubic feet)
  • Purpose: Restore program funding to pre-inflation levels; support smart metering infrastructure
  • Estimated annual revenue: $1.75M
  • Supports:
    • Customer rebates and incentive programs
    • Public engagement and opportunities for low-income households
    • Commercial water-saving opportunities
    • Homeowners Association education and conservation support
    • Research for long-term demand management
  • Aligned with Tucson Water’s One Water 2100 Master Plan

Green Stormwater Infrastructure (GSI) Fee

  • New Fee: $0.15 per Ccf (hundred cubic feet)
  • Purpose: Offset increased construction costs that have risen over 50% since 2020
  • Estimated annual revenue: $461,450
  • Supports neighborhood scale sustainable stormwater solutions like rain gardens, trees, and green spaces that absorb and filter rainwater

Additional Resources

For more detailed information, please review the following materials:

Financial Assistance

Back to top