Updated Water Rates Effective October 1, 2026
The Purissima Hills Water District (PHWD or District) Board of Directors held a public hearing on August 12, 2026, and adopted updated water rates, including monthly minimum (readiness-to-serve) charges, consumption charges, water shortage rates, and monthly cross-connection charges for applicable backflow devices.
The first rate adjustment will take effect October 1, 2026. Subsequent adjustments are scheduled for July 1, 2027; July 1, 2028; July 1, 2029; and July 1, 2030.
The updated rates are based on the District’s 2026 Water Rate Study, which evaluated the cost of providing water service and the District’s projected operating expenses, capital improvement needs, reserve policies, and long-term financial requirements. The rate structure was developed to ensure that rates remain fair, transparent, and consistent with California Proposition 218 requirements.
Why Water Rates Matter
Water rates support the reliable delivery of high-quality water service to District customers. Revenue generated from water rates funds the operation, maintenance, repair, and replacement of critical water system infrastructure, including pipelines, storage tanks, pumping facilities, and other system assets necessary to provide safe and reliable water service.
Water rates support the reliable delivery of high-quality water service to District customers. Revenue generated from water rates funds the operation, maintenance, repair, and replacement of critical water system infrastructure, including pipelines, storage tanks, pumping facilities, and other system assets necessary to provide safe and reliable water service.
The District periodically conducts comprehensive water rate studies to evaluate the cost of providing service and ensure that customers pay their proportional share of those costs. The 2026 Water Rate Study was prepared by an independent rate consultant and evaluated the District’s projected operating costs, capital improvement needs, reserve policies, and long-term financial stability.
The updated rates will help PHWD continue investing in the water system while maintaining reliable service for customers today and into the future.
Overview of the Updated Water Rate Structure
PHWD water rates include a monthly readiness-to-serve charge based on meter size, a consumption charge based on water use measured in hundred cubic feet (ccf, equivalent to 748 gallons), and an SFPUC wholesale water pass-through rate.
The updated rate schedule:
- Updates the District’s monthly minimum (readiness-to-serve) charge.
- Adds a monthly cross-connection charge for applicable backflow devices.
- Updates the consumption charge structure.
- Updates the approach used for the SFPUC wholesale water pass-through rate.
- Establishes water shortage rates that may be activated during declared water shortage stages to allow the District to recover necessary revenue when mandatory conservation reduces water consumption.
Frequently Asked Questions
The exact increase to your bill will depend on your water usage, size of water meter, and whether your account is residential or institutional and also, if you have a backflow device. To help understand how your bills are likely to change after October 1, 2026, we have provided a tool at the top of this page that will calculate your new bill and the change from the current rates.
The PHWD system is owned by its customers and their ratepayer revenues were used to reinvest in the system. Since the PHWD's last Water Rate Study dated January 12, 2022, the following capital projects were completed or are near completion (as noted), including project costs and lineal feet (LF) of water main:
- Taaffe Road Water Main Replacements (WMR) (Taaffe, Elena, Moody, Old Snakey). Total cost: $4,827,531 (9,400 LF)
- 2. Concepcion and Fremont Roads WMR. Total cost: $2,625,817
- Duval Way, Elena Road, Padre Court, Seton Property, and Josefa Lane Water Main Improvements. Total cost: $2,460,097 (4,500 LF)
- Christopher’s Lane, Gerth Lane, Liddicoat Drive, and Arastradero Road (CGLA) Water Main Improvements Project.
- W. Fremont Water Main Improvements Project. This project is expected to be completed next month.
- SCADA (Supervisory Control & Data Acquisition) System Replacement is a multi-year capital project scheduled to be completed next year. It upgrades the PHWD's automated control system for its water storage tank levels, and the related pump controls. Total cost to date: $123,105
- Automated Access Gate Replacements at Water Storage Tank Sites. Total cost: $135,368
- Altamont Pump Station Rehabilitation. Total cost: $183,832
The Board of Directors recently approved on June 10, 2026, the PHWD 5-Year CIP, which is a capital improvement planning tool for the next five (5) years. Capital Improvement Summary 2026
The District began this rate-setting process by engaging Water Resources Economics, LLC (WRE) in 2025 to conduct a comprehensive water rate study, with the following objectives:
• Evaluate a six-year financial plan scenario to meet financial targets from Fiscal Year (FY) 20261 to FY 2031
• Conduct a cost-of-service analysis based on the most recent data and customer use characteristics
• Develop a five-year water rate schedule from FY 2027 through FY 2031
• Develop a five-year water shortage rate schedule from FY 2027 to 2031
• Calculate updated water capacity fees (previously known as facility charges) for FY 2027 to be adjusted by CPI (Consumer Price Index) for future years
The Board of Directors considered and reviewed the study and water rate change at 6 public meetings from October 2025 through April 2026 to make sure that the water rate changes were necessary, proportional, and in the best interest of the District, its customers, and the community.
PHWD, like most public agencies that provide essential public services, is constrained in the way it sets rates due to the substantive requirements of Proposition 218.
Proposition 218 states that “property related fees and charges” (which include retail water rates) may not exceed the proportional cost of providing the service to the customer and may not be used for any purpose other than providing said service. The primary means by which retail water agencies address this requirement is by conducting a “cost-of-service analysis.”
As part of this rate study process, WRE worked with the Board and District staff to evaluate alternative rate structures. These alternatives include reducing the number of tiers for the Residential consumption charge from four to three tiers, or alternatively, implementing a uniform rate for all Residential customers.
The updated 2026 Water Rate Study goes into further detail on how the tiers were determined.
Meter charges are assessed to every customer based on the size of the water meter. The District allocates “fixed” costs through the meter charge, which are costs incurred by the District that do not vary based on water use or demand. The fixed charges represent the customer’s fair share of the system cost, based on the maximum safe flow/capacity as determined by meter size.
Fixed system charges are core costs of operating and maintaining the system, regardless of how much water a customer uses.