America’s largest water district says declining revenues due to increased water conservation are forcing the agency to significantly raise water rates to remain solvent.

The Metropolitan Water District of Southern California, which supplies water for 19 million Americans, is raising its rates 8.5% in 2025 and another 8.5% over baseline levels in 2026. The district’s projections include raising rates an additional 11.5% in 2027 and another 11.5% in 2028 to finance an $8.2 billion water recycling plant that could provide enough annual water for 1.5 million people.