In 2023, multiple cities in Orange County, California implemented water rate increases to address significant underinvestment and neglect of water infrastructure. These price increases were necessary to fund substantial maintenance and modernization that would ensure the long-term sustainability of the region's water supply and meet the increasing demand for water. The increases were intended to cover the costs of replacing aging pipes, improving water treatment facilities, and enhancing water delivery networks. 

In November 2023, in response to several sewage spills totaling more than one million gallons, Laguna Beach approved loans toward sewer improvements and implemented rate hikes of 6% through 2026 which would result in the average annual cost for a family to increase from $764 in 2021 to $1022 in 2026.[1]  

The city of San Juan Capistrano also adopted increases to address years of underinvestment. While monthly residential fees could increase for some by $30, schools and churches could see annual increases of $10,000, businesses could face a $15,000 increase, and industrial buildings as much as $24,000, with much of the increases related to fire suppression lines.[2]

Trabuco Canyon Water District’s rates will double to cover operational expense increases and “critical infrastructure improvement projects,” with increases set for the next five years of 116%.[3]

Other cities that raised water rates in Orange County last year were Anaheim, Costa Mesa, Huntington Beach, Irvine, Newport Beach, and San Clemente.

Water rate increases across Orange County have also been driven by increasing operational costs. The cost of acquiring and treating water continues to rise, and higher rates help cover the cost of maintaining and staffing water utilities, as well as investing in new technologies to improve efficiency and conservation.

The rate increases also encourage water conservation. Significant population growth of the county in recent years has strained the region's water resources. By increasing rates and incentivizing water conservation, cities hope to encourage efficient water use, reducing overall demand on systems.

[1] Pho, Brandon. “Laguna Beach Spills More Sewage into Ocean than Anywhere Else in OC.” Voice of OC, 5 Dec. 2023, voiceofoc.org/2023/12/laguna-beach-spills-more-sewage-into-ocean-than-anywhere-else-in-oc/.

[2] Noah Biesiada, Brandon Pho. “San Juan Capistrano Businesses Shocked over Staggering Proposed Water Bill Hike.” Voice of OC, 22 June 2023, voiceofoc.org/2023/06/san-juan-capistrano-businesses-shocked-over-staggering-proposed-water-bill-hike/.

[3] Biesiada, Noah. “Some South OC Residents’ Water Rates Double.” Voice of OC, 31 Oct. 2023, voiceofoc.org/2023/10/some-south-oc-residents-water-rates-double/#:~:text=Water%20bills%20are%20about%20to,increased%20their%20rates%20this%20year.