The City of San Diego homeowners who have spent years working on water conservation could soon pay more under a proposed overhaul of the city’s water rate structure.
The proposal would eliminate the city’s current tiered pricing system—which charges lower rates for basic water use and higher rates for heavier consumption—and replace it with a single flat rate for all residential customers. The change comes in response to a court ruling that found the existing conservation-based pricing structure did not comply with California law.
If approved, households that use less water would see the biggest impact. City estimates show low-water-use customers could pay about 7% more each month, an average increase of $5.62. Meanwhile, households with higher water usage could see their bills decrease by nearly 6%, saving about $19.52 per month.
The proposal has sparked concern among residents who say the new pricing model removes an important incentive to conserve water. Many homeowners have invested in drought-tolerant landscaping, efficient irrigation systems, and other water-saving improvements, only to face higher bills under the new structure. Others argue that customers who use more water should continue to pay more, both for fairness and to encourage responsible water use.
The decision could have implications beyond the City of San Diego. Since many California water agencies use similar tiered pricing systems, the court ruling may influence how utilities across the state structure their rates in the future.
The San Diego City Council is holding a public hearing and vote on the proposal on October 6, 2026, at 2pm. If approved, the new flat-rate system would take effect January 1 ,2027.
For more information visit the City’s website: https://www.sandiego.gov/public-utilities/customer-support/water-and-sewer-rates-increases