Water Supply and Sewage Treatment

The 3,900 water supply and irrigation system companies in the US store, pump, treat, and deliver water to customers. The 340 sewage treatment companies operate sewer systems or sewage treatment facilities that collect, treat, transport, and recycle wastewater. The sale of water accounts for the majority of industry revenue. Large firms may offer both water supply and sewage treatment services. Some firms also offer other types of utilities, such as electric power or gas.

Aging Infrastructure and Funding Gap

The water and wastewater infrastructure in the US is aging, and many systems are nearing the end of their useful life and in desperate need of modernization and replacement.

Rising Rates

Despite public pressure to keep rates low, the water supply and sewage treatment industry has been able to raise rates consistently with healthy increases over time.

Jul 26, 2026 - Congress Advances Water Legislation

• Engineering News-Record reports that House and Senate committees unanimously advanced separate versions of the 2026 Water Resources Development Act, including major provisions for water supply infrastructure. The Senate bill would authorize $16.5 billion for the Drinking Water State Revolving Fund from 2027 through 2030 and $260 million for the Water Infrastructure Finance and Innovation Act program. These funds could help water utilities finance treatment plants, pipelines, storage facilities, and projects needed to meet regulatory requirements while limiting pressure on customer rates. Both versions would also expand project delivery flexibility and partnerships with nonfederal entities, potentially reducing costs and accelerating construction. The Senate measure would direct the EPA to study technologies for detecting, monitoring, capturing, and removing microplastics and nanoplastics, potentially shaping future treatment standards and capital spending for water utilities.
• In a July news release, the National Association of Water Companies said the 15 largest regulated private water companies invested nearly $6.8 billion in 2025 to improve water and wastewater infrastructure, safety, and reliability. The companies have invested more than $43.5 billion over the past decade. Projects included replacing aging and leaking pipes, removing lead service lines, upgrading treatment plants to address contaminants such as PFAS, and preventing sewage from entering waterways. NAWC said the investments were funded by the private sector rather than taxpayers and reflected the industry's role in modernizing community water systems as federal and state governments confront extensive infrastructure needs.
• According to The New York Times, the Trump administration plans to roll back federal limits on certain PFAS, or “forever chemicals,” in drinking water, reversing parts of stricter Biden-era rules that linked the substances to numerous health problems. The Environmental Protection Agency (EPA) will rescind limits on four PFAS and retain restrictions on two, while allowing utilities up to two extra years to comply. Officials, including EPA Administrator Lee Zeldin and Health and Human Services Secretary Robert F. Kennedy Jr., said the changes correct legal flaws and could lead to stricter future rules, while also committing nearly $1 billion to help states address contamination. Environmental advocates and some supporters criticized the move as weakening protections, noting PFAS are widespread in US water supplies and persist in the human body.
• A coalition of 28 water, engineering, manufacturing, and environmental organizations is urging Congress to boost federal investment in water infrastructure as work begins on fiscal 2027 spending bills, according to WaterWorld. In a letter to House and Senate appropriators, the groups called for sustained funding for drinking water and wastewater systems, PFAS remediation, lead service line replacement, cybersecurity, water reuse, and affordability programs. Signatories included major industry associations and the US Chamber of Commerce. The coalition emphasized strengthening key financing tools, addressing aging infrastructure, and supporting resilience against cyber threats. It also highlighted the need for investment tied to economic growth, while preserving municipal bond tax exemptions and expanding financing flexibility for utilities facing rising regulatory and infrastructure costs.

Industry size & Structure

The average water supply and sewage treatment company employs 11-18 workers and generates $4 million in annual revenue.

• The water supply and irrigation system industry consists of about 3,600 firms that employ about 39,500 workers and generate about $12 billion annually. The sewage treatment industry consists of about 330 companies that employ about 5,800 workers and generate $1.5 billion annually.
• The industries appear concentrated; the top 50 companies account for between 71% and 87% of industry revenue. However, government ownership (at the local level) skews the concentration percentage, and both the water supply and sewage treatment industries are more fragmented than Census numbers reveal.
• The majority of community water systems and wastewater treatment systems are government-owned. About 5% of Americans receive water through investor-owned water supply utilities.
• Large government-owned systems include the New York City and Washington DC systems. Large investor-owned firms include American Water, Aqua America, and United Water (Suez Environment).
• According to the Cybersecurity and Infrastructure Security Agency, approximately 80% of the US population obtains its water from public drinking water systems. About 15% of households obtain water from private wells, according to the EPA. The US has 50,000 community water systems, of which 91% serve less than 10,000 customers. The US has 16,000 wastewater facilities that serve 80% of the population.