St. Louis is implementing significant water rate increases to address critical infrastructure needs and restore financial stability to its water system.
The St. Louis Board of Aldermen approved legislation on Thursday that will gradually raise water rates by approximately 90% over a six-year period. The initial increase of 18% will take effect on July 1.
Alderman Michael Browning from the 9th Ward, who introduced the legislation, praised his colleagues for backing this essential “generational investment” in the city’s water infrastructure. The rate increases are necessary because the Water Division has faced seven consecutive years of deficit spending, depleting all reserves and leaving insufficient funds for essential operations including treatment chemicals and electricity for water treatment and pumping facilities.
Beyond covering operational costs, these rate increases will help rebuild reserves and fund approximately $700 million in necessary capital improvements. The Water Division will also benefit from approximately $40 million in Rams settlement funds and $2.3 million in reallocated ARPA funds.
The city is introducing an “affordability rate” for lower-income residents—a first-time initiative. While specific eligibility criteria have not been detailed in the legislation, they are expected to consider income levels, eligibility for other utility assistance programs, and disaster-related hardships such as those caused by the May 2025 tornado.
Additional rate adjustments include permitting the city to negotiate premium rates for large new customers such as data centers. Concurrently, the discounted water rate currently enjoyed by the city’s hospitals, St. Louis Zoo, and Art Museum will be discontinued, with these institutions transitioning to standard metered customer rates beginning January 1.
Complementary legislation requiring water meters in new construction or following partial or complete water line replacement received preliminary approval on Thursday.
