New Fees for Utah Public Water Systems

Fee Incentivization Data Gathering

We are administering a new fee program that will take effect in Fiscal Year 2028 (FY28), starting July 1, 2027. As part of this process, our goal is to provide incentivized (lower) fee rates for water systems that meet specific qualifying conditions outlined in Utah Code Title 19-4-116(1)(d). An email with the information on this website was also sent out to all water system administrative contacts on February 19, 2026.

To determine eligibility for these incentives, we are asking all water systems to complete the Incentive Verification Survey by March 31, 2026.

*Note: If you are the administrative contact for more than one water system, please complete a separate survey for each individual water system.

Purpose of the Survey

The survey is used to verify whether your system meets one or more of the qualifying requirements for incentivized fee rates. The information provided in the survey will be used to calculate your system’s FY28 fee, which is based on 2025 water use data.

We will provide a copy of the FY28 calculated fee to all water systems in May 2026, allowing time to plan and budget for the fee due on July 1, 2027.

Available Incentives

Utah Code Title 19-4-116 outlines several incentives available to suppliers to lower their fee by using water conservation measures. Water systems qualify for a lower incentivized fee rate for each of the following conditions that you meet:

Community Systems:

1. Water meters installed on each residential connection – Reported on the Department of Water Rights Water Use Report in 2024 data or earlier. See the list of public water systems that currently qualify for this incentive.
2. Adoption of tiered water rates in 2025 or earlier.
3. A Drinking Water Master Plan that is no more than 10 years old
4. Compliance with system-specific sizing standards under Utah Code Title 19-4-114 – Verified by the Division of Drinking Water in 2025 or prior. See the list of public water systems that currently qualify for this incentive.

Non Community Water Systems:

1. Compliance with system-specific sizing standards under Utah Code Title 19-4-114 – Verified by the Division of Drinking Water in 2025 or prior. See the list of public water systems that currently qualify for this incentive.

Action Needed

1. Review the list of public water systems to see whether your system is currently marked as meeting applicable incentive requirements.
2. Complete the Incentive Verification Survey to confirm your system’s eligible incentives.
   • If you are the administrative contact for more than one water system, please complete a separate survey for each individual water system.
   • If your system is not listed as compliant for one or more incentives but you believe it should be, you may indicate this in the survey.
   • If you are the administrative contact for more than one water system, please complete a separate survey for each individual water system.
   • If your system is not listed as compliant for one or more incentives but you believe it should be, you may indicate this in the survey.

Important Deadline and Next Steps

• March 31, 2026: Complete Survey
  • Systems that do not respond by the deadline will be assigned the standard, non-incentivized fee rate by default.
  • Complete the survey even if your system does not qualify for any incentives. This will prevent follow-up reminder requests.
• May 2026: Division will send a copy of the calculated fee, allowing water systems time to plan and budget for the fee due July 1, 2027.

How to Qualify in Future Fee Cycles

If you currently do not qualify for an incentive this cycle but wish to inquire how to qualify for future years, refer to the information below or contact the Division of Drinking Water using the contact information provided on this website.

• Compliance with system-specific sizing standards under Utah Code Section 19-4-114
  • Water Systems will need to report water use data including peak day demands for at least three years to the Division of Water Rights (DWRi)
  • After three years of data including peak day demands are submitted to DWRi, contact engineering staff to send you a draft of your standard for review.
• Community Systems only
  • Water meters installed on each residential connection
    • Undergo a construction project to install meters on each connection.
  • Adoption of tiered water rates
    • Work with your water system’s city council or board to approve tiered rates.
  • A Drinking Water Master Plan no more than 10 years old
    • A Master Plan (or System Capacity and Expansion Report) documents a public drinking water system’s ability to meet current and future demands by evaluating sources, storage, pumping, distribution infrastructure, customer demand, hydraulic capacity, and planned system growth. For more detailed information see the rule reference.

If you have questions about the survey or the incentive criteria, please contact Dani Zebelean, P.E., at (385) 278-5110 or [email protected].