Water treatment and supply are becoming more costly. Gilbert is working to secure water resources for our community amid ongoing Colorado River shortages. Infrastructure such as treatment plants, pipes, and wells age over time, with utility rates helping cover their upkeep and replacement. Additionally, inflation in labor, energy, materials, and chemicals continues to drive costs higher.

Gilbert uses a tiered rate system, where water becomes more expensive as your usage increases. This encourages conservation and keeps costs down for those who use less. In Gilbert, over half of bills issued in 2024 were in the lowest usage tier. On the other hand, 7% of Gilbert’s total water is used by fewer than 1,000 homes.

Yes. Developers pay their fair share of utility fees.

While apartment complexes consume more total water, individual homes have significantly higher water use per dwelling, mostly from outdoor activities, which account for 50-70% of their consumption. In Gilbert, single-family homes represent the majority of water use, with usage more than double that of all schools, businesses, government facilities, and multi-family residences combined. Additionally, when new homes, apartments, businesses are built in Gilbert, developers pay a System Development Fee, which buys into the capacity of our water system and helps pay for construction needed to expand those facilities and provide the development with water service.

Myth: Apartments use a huge amount of water, and that makes things more expensive for homeowners.

Fact: Single-family homes use more than 2/3 of Gilbert's water, and more than 17x as much as apartments/multi-family residences.

If you live in a single-family home, reducing outdoor use lowers your bill. It's also good for conservation since outdoor water can't be reclaimed.

Growth pays for growth, and impact fees cannot cover everyday needs such as repairs or updates beyond expansion. These fees cover the costs of necessary upgrades to our system as more people move in, such as wells. User fees are the monthly rates we all pay for the water we use. User fees pay for operations, maintenance, and existing debt service. These fees cannot be used to pay for expansions or other government services.

 Impact Fees (System Development Fees)

• Assessed when new development occurs
• Calculated and assessed for expansion-related improvement
  • This includes growth-related additions to:
  • Water treatment systems (WTPs, Wells)
  • Water distribution system
• Growth is required to pay for its expansion of the system
• Impact fees are NOT used for operating the system or non-growth related needs like repair or replacement of the system

Rates (User Fees)

• Assessed monthly based on use or level of service
• Calculated based on Cost of Service Model and Rate Study report
• Costs included in the model:
  • Operation and maintenance of the system
  • Commodities
  • Repair and replacement
  • Debt Service
• NOT used for expanding the system to accommodate new users (growth)
• NOT used to support any general government services (police, fire, parks, etc.)

Rather than going into a giant, abstract pot of money, each line item on your bill goes to paying for that specific service. Your water bill funds the water department, your trash bill funds the solid waste/recycling department, etc. Each of the Town's utility services operates as a self-sustaining business.

Water rates pay for:

• Water resource costs
• Water treatment costs
• Water system maintenance
• Water system repair or replacement

Myth: My water bill is being used to fund new housing developments.

Fact: Water bills fund the Town's water service and nothing else. Real estate developers pay their fair share by paying a System Development Fee when they want to build in Gilbert.

Below is a breakdown of the monthly water charges based on consumption for customers with a ¾" meter (the standard size for a single-family home) and a 1" meter.

These water rates work like a tax bracket; the first 8,000 gallons you use are charged at the lowest rate, then the next 12,000 at a higher rate, and so on. 

If you have talked with friends in Chandler, Tempe, or other nearby cities, you may have heard that their utility rates are lower than yours. To see them side by side, take a look at the charts below of annual water rates among Valley cities:

The current rates support the maintenance and upgrade of our aging infrastructure amid rising replacement costs. We are rebuilding the North Water Treatment Plant, the largest investment in Gilbert’s water system and essential for long-term water resilience. Once complete, it will supply 70% of Gilbert’s water needs, serving 250,000 residents and providing 60 million gallons daily.

In addition, Gilbert is investing in eight groundwater wells that will provide access to stored groundwater and back up supply to 73,000 residents.

A total of 20 wells are currently in our groundwater portfolio.