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IMPORTANT INFORMATION ABOUT YOUR WATER RATES

The City of Indio and Indio Water Authority (IWA) has long been committed to providing clean, reliable, and safe water to our community. For the past six years, we have maintained our water system without increasing customer rates, absorbing rising costs associated with regulatory compliance, infrastructure maintenance, and essential upgrades. To continue delivering high-quality service and ensure the long-term sustainability of our water system, the IWA City Council will conduct a public hearing to consider a schedule of rate adjustments over the next five years.

All property owners and customers of record whose parcels receive water from IWA are being issued this notice of public hearing. The proposed rate adjustments would apply to all such properties. Property owners and tenants directly responsible for paying water fees may submit a written protest to the proposed rate changes, with one protest counted per parcel.

Important Dates

Public Hearing
Date: Wednesday, May 7, 2025
Time: 5 p.m. Location: Indio City Council Chambers

150 Civic Center Mall, Indio, CA 92201

Frequently Asked Questions

Where Does My Water Come From?

IWA’s drinking water comes exclusively from the lower Coachella Valley Groundwater Basin, or the Whitewater Aquifer, which lies roughly 300’ to 1,300’ below the ground surface in Indio.

Why Change Our Water Rates?
Indio Water Authority has not raised rates in more than six years. The five-year schedule of rate changes funds critical capital improvements that make our water supply safer and more sustainable. These priorities include:
  • A collaboration with Coachella Valley Water District (CVWD) to protect against stormwater and flood control
  • The design of a project that will safeguard our water supply from Chromium-6
  • Appropriate reserves over the next five years to cover IWA debts
  • Meeting the rising costs of operations and maintenance of IWA’s treatment and distribution facilities
  • The repair and replacement of aging infrastructure, including pipelines, fire hydrants, and pumps

How Will This Impact My Bill?
As a government agency, IWA can only charge what it costs to provide water service. This means the customer will never pay more than their fair share of the service cost. An independent cost-of-service study completed in 2025 evaluated the cost of providing water service to the community. This considered operations, maintenance, capital expenditures, reserves, and debt obligations.

Under the proposed water rate changes, the average IWA customer would see an annual increase of around $3 per month from fiscal year 2026 to 2029.

These rate changes are critical to IWA’s ability to provide stable and resilient service to its customers. The changes recover $4 million in additional revenue over five years, which covers operations and maintenance, and fully fund $25.8 million in critical capital projects over the next five years without incurring more debt. IWA will use rate stabilization reserves to mitigate the impact of the updated cost of service.

How Are Water Bills Calculated?
Your monthly water bill is based on several key factors, including your customer class and water usage.

Residential Customers
Residential customers are billed using budget-based rates that account for each household’s unique water needs while promoting efficient water use. The water budget consists of two tiers:

Indoor Water Budget (Tier 1)
The indoor water budget is based on an allocation of 47 gallons per person per day. Indoor use
typically accounts for about 40% of total residential water usage, with the remaining water allocated for outdoor irrigation.

Outdoor Water Budget (Tier 2)
Each residential customer’s outdoor water budget is calculated individually, considering:
  • Landscape area (estimated at 45% of lot/parcel size)
  • Daily weather data
  • Local plant water needs
  • Watering efficiency rates
  • Evapotranspiration (water lost through soil evaporation and plant transpiration)
Total Water Budget
The water allocated in your Indoor Budget is delivered at the Tier 1 rate. Water allocated in your Outdoor Budget is delivered at the Tier 2 rate. The sum of your Indoor and Outdoor Budget makes up your Total Water Budget. If you don’t use all the allotted water in your budget, you will only be charged for what you use.

Additional Water Use
Any water use beyond your Total Water Budget (TWB) will be charged at higher rates. Residential overages will be billed at the Tier 3 rate per CCF. (Example: If your Total Water Budget is 30 CCF, any water used beyond that will be charged at the Tier 3 rate per CCF.)

Non-Residential/Business Customers
The variable water rates for non-residential customers would transition from a tiered system to a uniform rate, applied equally to all customers based on usage. 

Irrigation Customers
Irrigation customers’ rate structure would be simplified from three tiers to two:
  • Tier 1: A unique water budget allotment based on individual needs.
  • Tier 2: Applied to any water usage exceeding the Tier 1 allocation.

    • Documents

    Notice of Public Hearing

    FY 2025 Water Cost of Service Rate Study

    IWA Chromium-6 Tier 2 Notification - Compliance Letter

    Questions

    We are happy to help answer your questions at your convenience. Please feel free to contact us at 760-984-9781

    Water Service Charges Estimator