San Antonio, December 10, 2025
The San Antonio Water System (SAWS) reveals plans to increase its revenue by 42% over the next five years. This decision comes as the city grapples with rising operational costs and the urgent need for infrastructure enhancements. Customers should prepare for potential rate adjustments, which will be discussed in detail in upcoming consultations. The initiative aims to support local economic growth while ensuring that the water services meet the demands of the expanding population in the area.
San Antonio Water System Projects 42% Revenue Increase Over Five Years
San Antonio’s growth is a testament to the resilience and entrepreneurial spirit of its residents. With the San Antonio Water System (SAWS) announcing plans to enhance its revenue by 42% over the next five years, the community faces critical choices about water and wastewater rates. As operational costs escalate, addressing infrastructure needs will be crucial for sustaining our water services and supporting local economic vibrancy.
The initiative underscores the importance of fostering a business-friendly environment that encourages innovation and private investment in essential services. Local entrepreneurs and businesses need reliable utilities to thrive, and SAWS is taking steps to ensure that the city’s water infrastructure keeps pace with the demands of a growing population.
Projected Rate Increases
While SAWS officials have not detailed the specific rate adjustments, the projected revenue increase signals that customers can anticipate increased costs for water and wastewater services. The utility currently serves around 580,000 customers for water and 520,000 for wastewater across Bexar County and parts of Atascosa and Medina counties.
Reasons for the Increase
The need for revenue growth arises from various factors impacting SAWS:
- Water Supply Needs: Anticipated costs are expected to rise by 11% over five years.
- Water Delivery Expenses: These costs are projected to increase by an astounding 65%, partly due to a $300 million generator installation project scheduled between 2026 and 2028.
- Wastewater System Upgrades: Aging plants require extensive repairs and enhancements costing hundreds of millions of dollars.
Next Steps and Timeline
To guide its revenue increase, SAWS has enlisted Carollo Engineers as a consultant to prepare a draft report on the proposed rate hikes, with the draft expected in January and final recommendations in February. Should the SAWS Board of Trustees approve these adjustments, the proposed rates will then be presented to the San Antonio City Council for final approval, with implementation anticipated in the first half of 2026.
Background
SAWS last adjusted its rates in 2020 and restructured its rate system in 2023, resulting in lower water and sewer costs for nearly all residential customers while increasing commercial rates. These upcoming rate adjustments are designed to ensure the utility can continue providing essential water and wastewater services, accommodating rising costs and infrastructure requirements.
Key Features of the Proposed Rate Increases
| Feature | Details |
|---|---|
| Proposed Revenue Increase | 42% over the next five years |
| Expected Rate Hike Timeline | First half of 2026 |
| Primary Reasons for Increase | Rising operational costs, infrastructure upgrades, water supply needs, water delivery expenses, wastewater system repairs |
| Consultant Preparing Report | Carollo Engineers |
| Previous Rate Adjustment | 2020 |
Frequently Asked Questions (FAQ)
What is the proposed revenue increase for SAWS over the next five years?
The San Antonio Water System (SAWS) plans to increase its revenue by 42% over the next five years, which will require higher water and wastewater rates for customers.
When will the new rates take effect?
If approved, the new rates are expected to take effect in the first half of 2026.
Why are the rates increasing?
The rate increases are necessary to cover rising operational costs and to fund essential infrastructure upgrades, including water supply needs, water delivery expenses, and wastewater system repairs.
How will the rate increases affect customers?
Customers can expect higher water and wastewater bills, though the exact amount will depend on the final rate adjustments approved by the SAWS Board of Trustees and the San Antonio City Council.
When will the final rate recommendations be available?
The draft report on the proposed rate hikes is expected in January, with final recommendations in February.
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Author: STAFF HERE SAN ANTONIO WRITER
The SAN ANTONIO STAFF WRITER represents the experienced team at HERESanAntonio.com, your go-to source for actionable local news and information in San Antonio, Bexar County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Fiesta San Antonio, San Antonio Stock Show & Rodeo, and Dia de los Muertos. Our coverage extends to key organizations like the Greater San Antonio Chamber of Commerce and United Way of San Antonio and Bexar County, plus leading businesses in retail, insurance, and energy that power the local economy such as H-E-B, USAA, and Valero Energy. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HEREHouston.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
