Water costs are not always as straightforward as a single monthly bill. Depending on where you live and how your home is connected to local water infrastructure, you may pay for water directly, indirectly, or through a combination of water, energy, and maintenance costs. Regardless, reducing water use almost always saves money, no matter how your home is billed.
Most homes that are connected to a municipal water system receive a water bill from a local utility, but the structure of that bill can vary widely.
Some utilities use tiered or block pricing, where the price per unit of water increases as more water is used. This means high water use not only raises total consumption, but also increases the cost of each additional gallon of water used. Water usage is typically measured in kilo-gallons or hundred-cubic feet, depending on the utility.
Water bills usually include separate line items for water supply (the water delivered to your home) and sewage or wastewater (the cost to collect and treat water after it goes down the drain). Some bills might even include stormwater fees.
Not everyone receives a water bill directly. For renters, water costs may be included in rent or covered by the property owner. Homes with private wells are not billed for water usage. Even in these cases, water still has real costs, which show up in other ways.
Regardless of whether you receive a water bill, nearly all homes pay for the energy required to heat water. Hot showers, dishwashers, washing machines, and sinks all use hot water, often making water heating one of the largest energy uses in a home.
The cost of hot water depends on several factors, including:
Reducing hot water use lowers both water and energy bills. This is why water efficiency matters even for households that do not pay for water bills directly.
Homes with private wells and septic systems avoid monthly water and sewer bills, but water is not free in these systems.
Well owners pay for electricity to pump water into their home, well pump maintenance and replacement, water testing and filtration, and repairs to pipes and pressure systems. Septic system owners pay for routine inspections, pumping, and damage caused by excess water entering the system.
High water use can shorten the lifespan of both well pumps and septic systems, leading to costly repairs. Reducing water consumption helps protect these systems, lower energy use for pumping, and avoid unexpected maintenance expenses.