Proposed rates

In accordance with Proposition 218, these are the proposed rate changes for the next fiscal year.

IRWD’s rates are based on the actual cost to provide water and sewer service to customers and are based on expenses included in the District’s budget. A critical IRWD objective is to keep costs and rates as low as possible. Even with proposed increases, when compared with other agencies providing similar services in Orange County, IRWD’s rates are consistently among the lowest.

Proposed rate changes for FY 2025–26

The IRWD Board of Directors adopted a two-year budget on March 24, 2025. The proposed rates for the two years, if adopted, will be effective June 23, 2025, and will be implemented on July 1, 2025, and July 1, 2026, respectively.

The basis for the proposed rates is detailed in the Cost of Service Study. Additional information can be found in the FY 2025 / 26 / 27 Operating Budget and FY 2025 / 26 / 27 Capital Budget.

Proposition 218 notices

For specific details on proposed rate changes to your bill, read the Proposition 218 Notice that applies to you.

Understanding IRWD’s budget-based rate structure

IRWD uses a budget-based water rate structure. How much you are charged for the water you use depends on whether you stay within your monthly budget. For residential customers, each residence is assigned a water budget based on the number of people who live in the home, the square footage of outdoor landscaped area and the weather. Commercial customers are billed based on a similar structure, but with two tiers: Base (0-100%) and Wasteful (101%+).

Commercial customers are billed based on a similar structure, but with two tiers: Base (0-100%) and Wasteful (101%+).

Basic components of your water bill

Your water bill has two basic components:

  • Variable water usage charges are for water you use indoors and outdoors. Charges are based on the cost of local and imported water and costs of services that vary based on usage.
  • Service charges are to recover the fixed expenses of operating and maintaining IRWD’s infrastructure.

Each tier is assigned a rate based on the actual cost of service, which varies according to the source of water. For example, local groundwater costs less than imported water from out of state or Northern California.

The Low Volume tier rate rewards customers who use the least water, which reduces the need for IRWD to buy water supplies that are more expensive. The Base tier is for customers who stay within their monthly water budget allocation. The Inefficient and Wasteful tiers are for customers who exceed their monthly budget.

For more information, see Understanding your bill.

Why did the cost of water and sewer service increase?

The main reasons for the change include uncontrollable cost increases to IRWD attributed to:

  • Pass-through charges from Orange County Water District (OCWD) for pumping local groundwater, which is still the lowest-cost water source (3.4% increase in FY 2025–26 and 4.8% increase in FY 2026–27).
  • Pass-through charges from Metropolitan Water District of Southern California (MWD) for imported water purchased through the regional wholesaler, the Municipal Water District of Orange County (MWDOC) (11% increase in FY 2025–26 and 11% increase in FY 2026–27).
  • Increase in charges from Southern California Edison (SCE) for electricity used in IRWD service operations (8% increase in FY 2025–26 and 8% increase in FY 2026–27).
  • Increases in costs associated with continuing to provide the current high level of water service our customers expect, including costs associated with repairs and maintenance related to maintaining the existing infrastructure (7.2% increase in FY 2025–26 and 3.5% increase in FY 2026–27).
  • Inflation.

Updates to budget-based rate structure and rates

See below for key information on indoor and outdoor water budgets, billing tiers, fixed service charges, pumping surcharges, and other technical data.

Residential / landscape / nonagricultural customers

Proposed variable water rates per CCF* beginning July 1, 2025

ServiceLow volume tierBase tierInefficient tierWasteful tier
Total water source cost$2.07$2.60$4.77$5.21
Districtwide conservation programs$0$0.12$0.12$0.12
Conservation programs targeted to over-budget customers, urban runoff costs and water banking costs$0$02.62$13.27
Total cost per CCF per tier proposed beginning July 2025$2.07$2.72$7.51$18.60
Current rates$1.99$2.65$6.55$16.46
Change$0.08$0.07$0.96$2.14

Proposed variable water rates per CCF beginning July 1, 2026

ServiceLow volume tierBase tierInefficient tierWasteful tier
Total water source cost$2.18$2.80$5.15$5.43
Districtwide conservation programs$0$0.12$0.12$0.12
Conservation programs targeted to over-budget customers, urban runoff costs and water banking costs$0$0$2.76$13.77
Total cost per CCF per tier proposed beginning July 2025$2.18$2.92$8.03$19.32
Proposed FY 2025–26 rates$2.07$2.72$7.51$18.60
Change$0.11$0.20$0.52$0.72

Commercial / industrial / public authority / nonresidential mixed use customers

Proposed variable potable water rates per CCF beginning July 1, 2025

ServiceBase tierWasteful tier
Total water cost$2.60$5.21
Districtwide conservation programs$0.12$0.12
Conservation programs targeted to over-budget customers, urban runoff costs and water banking costs$0$13.27
Total cost per CCF per tier proposed beginning July 2025$2.72$18.60
Current rates$2.65$16.46
Change$0.07$2.14

Proposed variable potable water rates per CCF beginning July 1, 2026

ServiceBase tierWasteful tier
Total water cost$2.80$5.43
Districtwide conservation programs$0.12$0.12
Conservation programs targeted to over-budget customers, urban runoff costs and water banking costs$0$13.27
Total cost per CCF per tier proposed beginning July 2025$2.92$19.32
Current rates$2.72$18.60
Change$0.20$0.72

*1 CCF=748 gallons

  • Indoor water budget: 50 gallons per person per day (divided by 748, to convert gallons to CCF). For single-family homes, we assume a default of four people per household. For condominiums, we assume three people per household, and for apartments we assume two people per unit. If your household is larger, you may apply for a variance to increase your water budget.
  • Outdoor water budget: Is calculated for your property using actual data from local weather stations. We multiply your irrigated landscape area (in acres) x evapotranspiration x 0.75 ET factor x 36.3 conversion factor to convert acre inches of water to CCF.

Residential customers’ outdoor monthly water budget is based on 60% warm-season turf and 40% drought-tolerant landscaping.

Residential customers with cool-season turf lawns may be over their monthly outdoor water budget. Customers who continue to irrigate nonturf landscapes with sprinklers and overhead sprays may go over their monthly budget because these systems are less efficient at delivering water to the plants. Drip irrigation is the most efficient form of irrigation for nonturf areas.

Outdoor landscape potable and recycled water monthly budget

TypeMonthly budget basis
Irrigated with potable water60% warm-season turf + 40% drought-tolerant landscape
Irrigated with recycled water100% warm-season turf

Average monthly residential water budget for a 30-day billing period

Residence typeIndoor CCF*Average outdoor CCFTotal average monthly budget CCF
Attached home condo617
Apartment4N/A4
Single family residence8412

All other customers can find outdoor water budget information in the Prop 218 notice above.

The monthly fixed water service charges for the average residential customer will increase from $13.20 to $14.90 beginning July 1, 2025, and from $14.90 to $15.60 beginning July 1, 2026. 

The fixed water service charge is used to pay for operations and maintenance costs, including inevitable infrastructure enhancements and replacements.

The fixed water service charge is based on the meter size, which appears on the bill. For a list of proposed changes to the water service charge for all meter sizes, please refer to the IRWD Proposition 218 Notice near the top of this page.

The fixed water service charge is based on a 30-day billing cycle. Billing cycles that are longer or shorter than 30 days will produce service charges that are proportionally larger or smaller.

Your meter size and amount appear on your bill. Residential customers who remain in the Low Volume tier for most of the year will have a larger percentage of their bill made up of the fixed charge. Customers who remain in the Low Volume tier for nine months of the prior calendar year will receive a $2.00 credit per month, which will be itemized on each bill. New customers do not receive this credit unless they have been with the District for a full calendar year.

Residential customers

Fixed monthly sewer service charges are used to pay for operations and maintenance costs associated with providing sewer service, including inevitable sewer infrastructure enhancements and replacements of infrastructure such as pipes, pumping stations, and treatment facilities. Each customer’s use of IRWD sewer service derives from the customer’s use of potable water from IRWD, so each customer is billed in one of three tiers, based on the customer’s lowest three-month potable water usage from the prior calendar year. Until IRWD has a new customer’s full calendar year of usage history, the customer is billed at the middle-tier rate.

Proposed changes to fixed monthly sewer service charges for collection and treatment

UsageCurrent monthly ratesProposed rates beginning July 1, 2025Proposed rates beginning July 1, 2026
Average water usage exceeds 10 CCFs per month$36.79$43.45$44.60
Average water usage falls between 5 and 10 CCFs$31.86$37$38.10
Average water usage falls below 5 CCFs$25.70$28.80$29.85

Proposed changes to sewer service charges for collection or treatment only

UsageCurrent monthly ratesProposed rates beginning July 1, 2025Proposed rates beginning July 1, 2026
Collection service charge$11.55$13.05$13.65
Treatment service charge$20.50$23.95

Note: Until IRWD has a new customer’s full calendar year of usage history, the customer is billed at the middle tier rate.

Commercial / Industrial / Public Authority / Non-Residential Mixed Use customers

Fixed monthly sewer service charges are used to pay for operations and maintenance costs associated with providing sewer service, including inevitable sewer infrastructure enhancements and replacements of infrastructure such as pipes, pumping stations, and treatment facilities. Each customer’s use of IRWD sewer service derives from the customer’s use of water from IRWD. Additional fixed monthly charges for the operation and maintenance of the system are based on 90% of the volume of water used and treated in excess of 10 CCF per month, because historic use data shows that is the portion sent to IRWD’s sewer system. The proposed fixed and variable monthly charges are presented below.

Proposed changes to fixed monthly sewer service charges for collection and treatment

UsageCurrent monthly ratesProposed rates beginning July 1, 2025Proposed rates beginning July 1, 2026
Average water usage is less than or equal to 10 CCF per month$36.79$43.45$44.60
Quantity service charge (beyond 10 CCF)$3.07/CCF$3.94/CCF$3.99/CCF
OC San special purpose permit discharge rate (if applicable)Up to $1,754.41 per million gallonsUp to $1,836.37 per million gallonsUp to $1,922.17 per million gallons

Proposed changes for areas receiving collection service or treatment service only

UsageCurrent monthly ratesProposed rates beginning July 1, 2025Proposed rates beginning July 1, 2026
Collection service charge$11.55$13.05$13.65
Collection service charge
(beyond 10 CCF per month)
N/A$1.06$1.08
Treatment service charge$20.50$23.95$24.45
Treatment service charge
(beyond 10 CCF per month)N/A$2.88$2.91

Private firelines provide water to sprinkler systems for fire suppression on private property. These include fire protection systems, such as fire protection sprinklers that are not part of, but are connected to, the public water service.

Costs are billed to the customers owning the private fire protection systems and are based upon the size of the fireline. Firelines will be allocated one CCF of water usage to allow for routine testing. Any use beyond fire suppression and one CCF for routine testing will be charged the variable water use charge within the Wasteful tier.

Proposed changes to monthly fireline service charges

Private fireline sizeCurrent monthly ratesProposed rates beginning July 1, 2025Proposed rates beginning July 1, 2026
1″$7.65$8.10$8.50
2″$10.15$10.20$10.85
3″$15.80$14.95$16.25
4″$25.50$23.15$25.50
6″$60.35$52.60$58.80
8″$120.50$103.35$116.20
10″$210.95$179.75$202.60
11″$268.95$228.75$258
12″$336.30$285.60$322.30

A pumping surcharge will be added to the variable water usage charge for customers in locations that cause IRWD to incur additional pumping costs to supply their water. The surcharge is based on the actual prevailing energy costs and varies depending on the cost to pump water to the area served. If you live in an area affected by a pumping surcharge, the charge is itemized on your monthly bill. IRWD is proposing changes to the pumping surcharge areas.
Proposed maps: potable non-potable.

Proposed changes to pumping surchase – Potable

(Residential and Landscape / Agricultural customers)

VIEW AREA MAP

ComponentCurrent rates per CCF* 
(vary by pumping surcharge area)Proposed rates per CCF*
beginning July 1, 2025
(vary by pumping surcharge area)Proposed rates per CCF*
beginning July 1, 2026
(vary by pumping surcharge area)
Pumping surcharges by area$ 0.41 to $1.88$0.44 to $2.03$0.48 to $2.19

Proposed changes to pumping surcharge – Recycled
(Commercial / Industrial / Public Authority / Non-Resdiential Mixed Use and Landscape / Agricultural customers)
VIEW AREA MAP

ComponentCurrent rates per CCF* 
(vary by pumping surcharge area)Proposed rates per CCF*
beginning July 1, 2025
(vary by pumping surcharge area)Proposed rates per CCF*
beginning July 1, 2026
(vary by pumping surcharge area)
Pumping surcharges by area (recycled)$0.25 to $0.58$0.27 to $0.63$0.29 to $0.68

*1 CCF = 748 gallons

Billing tiers are based on cost of service and on proportional use.

The number of billing tiers for residential and landscape customers remains unchanged at four, as follows:

Tier 1 – Low Volume
Tier 2 – Base
Tier 3 – Inefficient
Tier 4 – Wasteful

The number of billing tiers for commercial customers also remains unchanged at two, as follows:

Tier 1 – Base
Tier 2 – Wasteful

The billing tiers are based on cost of service and on proportional use. 

Residential and Landscape / Non-Agricultural customers

Summary of proposed residential variable water rates

TierPercentage use of monthly water budget for Residential and Landscape / Non-Agricultural customersProposed rates per CCF beginning July 1, 2025
(1 CCF = 748 gallons)Proposed rates per CCF beginning July 1, 2026
(1 CCF = 748 gallons)
Tier 1 Low Volume0 – 40%$2.07$2.18
Tier 2 Base41 – 100%$2.72$2.92
Tier 3 Inefficient101 – 140%$7.51$8.03
Tier 4 Wasteful141+$18.60$19.32

Landscape / Non-Agricultural customers

Summary of proposed variable recycled water rates

TierPercentage use of monthly water budget for Residential and Landscape / Non-Agricultural customersProposed rates per CCF beginning July 1, 2025
(1 CCF = 748 gallons)Proposed rates per CCF beginning July 1, 2026
(1 CCF = 748 gallons)
Tier 1 Low Volume0 – 40%$1.38$1.45
Tier 2 Base41 – 100%$2.39$2.37
Tier 3 Inefficient101 – 140%$5.43$5.78
Tier 4 Wasteful141+$9.93$10.46

Commercial / Industrial / Public Authority / Non-Residential Mixed Use customers

Summary of proposed potable commercial commodity rates

TierPercentage use of monthly water budgetProposed rates per CCF beginning July 1, 2025
(1 CCF = 748 gallons)Proposed rates per CCF beginning July 1, 2026
(1 CCF = 748 gallons)
Base0 – 100%$2.72$2.92
Wasteful101%+$18.60$19.32

Summary of proposed recycled water commercial commodity rates

TierPercentage use of monthly water budgetProposed rates per CCF beginning July 1, 2025
(1 CCF = 748 gallons)Proposed rates per CCF beginning July 1, 2026
(1 CCF = 748 gallons)
Base0 – 100%$2.39$2.37
Wasteful101%+$9.93$10.46

For temporary (construction) commodity rates and untreated water commercial commodity rate, please see the Prop 218 notice above.

The water budget for landscapes irrigated with potable (drinking) water is based on an 80% irrigation efficiency. This results in an evapotranspiration factor (ET factor) of 0.75. The water budget for recycled water use and for functional turf irrigated with drinking water, such as a sports field, is based on 75% irrigation efficiency. This results in a landscape factor of 0.87.

Technical formula for the monthly water budget

Account typeNumber of residents
(default)Landscape area (default)Indoor budget
50 gallons per personper dayOutdoor
water budget*LA x ET x ETFTotal monthly
water budget
Attached home condo 3435 sq. feetIndoor budget
50 gallons per personper dayLA x ET x ETF (0.75)Indoor + outdoor
Attached home condo 2N/A# Residents x 50 gpd x days in bill periodN/AIndoor
Single family residence 41,300 sq. feet# Residents x 50 gpd x days in bill periodLA x ET x ETF (0.75)Indoor + outdoor
Irrigation
potable
N/ASite specific based on irrigated acreageN/ALA x ET x ETF (0.75)Outdoor
Irrigation recycled N/ASite specific based on irrigated acreageN/ALA x ET x ETF (0.87)Outdoor
Functional turf irrigated with potable water N/ASite specific based on irrigated acreageN/ALA x ET x ETF (0.87)Outdoor
Commercial, industrial institutional N/ASite specific based on irrigated acreageSite specificSite specific, based on irrigation needsSite specific
*the outdoor water budget is multiplied by 36.3 to convert to ccf

Definitions:

GPDGallons per day
CCF100 cubic feet. 1 ccf = 1 billing unit or 748 gallons
LAIrrigated landscape acreage of the specific property (acres)
ET – evapotranspirationReference evapotranspiration: The amount of water that evaporates into the air and the amount of water that is transpired through the vegetation. Evapotranspiration values are computed daily from IRWD’s three weather stations for the billing period. This data is provided from IRWD weather stations located in the coastal, central, or foothill zones.
ET factor (ETF)The ET factor adjusts the reference evapotranspiration using a plant factor and irrigation system efficiency. IRWD’s outdoor formula for potable water is based on a landscape that is comprised of 60% grass with an irrigation system efficiency of 75%, and 40% drought-tolerant plants with an irrigation system efficiency of 80%. This results in an ETF for potable water of 0.75. For recycled water and functional turf irrigated with potable water, the formula is based on 100% warm-season turf and an irrigation system efficiency of 75%. This results in an ETF of 0.87.
Indoor UseBased on the number of people per household for residential accounts. Based on the number of employees and business process water for commercial/industrial accounts.
N/ANot applicable

The chart below summarizes the assumptions made by IRWD for residential water budgets, depending on the type of residence. IRWD encourages residential customers who need more water than their basic water budget provides to apply for a variance. Variances are given for additional occupants, special medical needs, and larger landscaped areas, among other things. Variances are effective on the date that the request is received by the District and must be renewed annually.

Learn more and apply for a variance.

IRWD adopted a Water Shortage Contingency Plan (WSCP) in 2021 as part of its Urban Water Management Plan. The WSCP includes requirements to implement locally appropriate water shortage response actions for six standard water shortage levels. Implementation of WSCP rates would require action by the IRWD Board of Directors and separate customer outreach.

Currently, IRWD is not projecting any water shortages. Learn more about WSCP rates.

To use the WSCP budget-based-rate calculator, visit wscprates.IRWD.com.

Estimate your bill

Residential and landscape customers: Use the IRWD Rate Calculator to estimate your bill.