Denver Water’s 32% Fee Hike Will Land on New Housing July 1
Denver Water is raising the one-time fee it charges to connect new homes and businesses to its water system by as much as 32%, effective July 1, 2026. The Denver Board of Water Commissioners approved the increases last year, citing the cost of major infrastructure buildouts including the expansion of Gross Reservoir and construction of a new water treatment plant.
The fee for a single-family home inside Denver city limits will jump from $7,930 to $10,450. Suburban customers will pay $14,680, up from $11,100 in 2025.
$2,520 The dollar increase in the tap fee for a single-family home in Denver, a 32% jump taking effect July 1, 2026.
Tap fees are typically paid by builders, not buyers directly, but construction costs flow to renters and buyers. Denver metro housing growth has already slowed, which limits the immediate shock, but any added cost in a strained market matters.
Why Fees Were Frozen Since 2013
Denver Water, which serves 1.5 million people in the metro area, had not raised tap fees since 2013. Rate manager Fletcher Davis told the Colorado Sun that conservation gains, including water-efficient landscaping, showerheads, and toilets, had allowed the utility to serve growth without new infrastructure investment. That buffer has now run out.
The Gross Reservoir expansion and new treatment plant are not optional. They are part of the utility’s long-term obligation to serve a growing region. The board’s position is that new development should fund the infrastructure that new development requires.
What Housing Experts Say About the Timing
Susan Daggett, a University of Denver law professor, former Denver Water board member, and affordable housing expert, said the impact is real but moderated by context. Denver’s water rights are older and its system more built out than many Colorado communities where tap fees run far higher. She told the Colorado Sun that the fee increase “matters less in Denver than it does in other parts of the state.”
That framing may offer some comfort at the regional level, but it does not address the cumulative pressure of rising construction costs on housing affordability in the city itself.
What You Can Do Now
-
Contact the Denver Board of Water Commissioners and ask them to publish a public report on how tap fee revenue will be allocated and whether any affordability exemptions for affordable housing projects are under consideration. The board meets monthly. Find contact information at denvergov.org.
-
Call your Denver City Council member at (720) 337-2000 and ask them to request a housing impact analysis of the new tap fee schedule before July 1 implementation. Council members have standing to request hearings from utility agencies that affect development costs in their districts.
-
Contact Colorado state legislators on the House Transportation, Housing, and Local Government Committee and urge them to create a statewide tap fee affordability review for income-restricted housing projects. Find your legislator at leg.colorado.gov/find-my-legislator.
-
Submit a public comment to Denver Water directly through its rate and fee feedback portal asking for a transparent breakdown of how the new fees cover infrastructure versus reserves, and whether phased increases were considered as an alternative to a single 32% jump.
Sources
Colorado Sun: Denver Water Raises Tap Fees Up to 32% Starting July 2026 Water Education Colorado: Denver Water Tap Fee Increases and Infrastructure Costs Denver Water: Rate and Fee Schedules for New Connections