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Summary:
Your water bill may be going up in California because state water mandates are putting more pressure on water agencies and their suppliers. SB 606, which first rolled out in 2018, set up a conservation framework that includes strict targets for residential water consumption. This doesn’t directly affect how much water you can use at home. Instead, it’s used to calculate each provider’s annual water budget. Upgrading to high-efficiency toilets, faucets, and showers can reduce your consumption and costs.
| Time to Read | 5-7 Minutes |
| What You’ll Learn |
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| Next Steps |
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If you live in California, the state wants you to use less water, and it’s leaning on local water agencies to make it happen. SB 606 and AB 1668, which first came into effect in 2018, created a framework for urban water conservation that requires water suppliers to meet state-defined efficiency targets.
Initially, the standard for indoor residential water use was set at 55 gallons per person per day, but it later moved to 47 gallons per day by 2025, and then, 42 gallons by 2030. Suppliers who fail to meet them won’t face penalties just yet, but that’s all about to change in 2027.
Below, we’ll tell you what these changes mean for Bay Area homeowners, how they’re affecting people so far, and why they may already be leading to price hikes in the cost of water. We’ll also share our favorite strategies for rooting out waste at home with high-efficiency plumbing upgrades and repairs!
What You Need to Know About the Mandates
First, here’s a little good news: the 47-gallon figure is a budgeting target for your water agency only, not a personal limit on how much water you can use. The state has no intention of fining anyone for sneaking in a few long, hot showers here and there!
That said, we’re already starting to notice a growing trend of changes that suggest the agencies affected, and their suppliers, are passing the cost of compliance on to customers.
The pressure is showing up in three main ways:
- Less Use Reduces Supplier Revenue. Logic dictates that when you lower the demand for water, the amount selling water brings in month-to-month also falls. That’s great for the environment, but some people worry it may be causing providers to try and recoup the losses elsewhere.
- Rates are Already Rising. SFPUC’s wholesale rate rose by about 27% across 2022 and 2023, and Cal Water plans to roll out a 10.9% increase in July. Burlingame, San Mateo, and most of the Peninsula get their water from one of these two providers.
- Compliance is Expensive to Begin With. Regulators believe the cost of complying with the new rules could end up costing $4.7 billion over the next 15 years statewide. That includes roughly $1 billion in lost sales from reduced consumption.
Pinning down exactly how much the mandates are influencing the price hikes isn’t easy because there are so many other issues affecting operating costs right now. The economy is in a tough place, equipment costs more to maintain, and a significant portion of our local infrastructure is aging out.
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The Steep Cost of Missing Water Targets
The grace period that gave agencies breathing room to start implementing change without having to report their results will officially end on January 1, 2027. After that point, any supplier or agency who cannot prove residential demand stayed within the budget will face penalties, up to and including steep fines.
Regulators can respond by:
- Asking for more clarifying information
- Warning the agency about the failure
- Issuing a formal order to reduce residential consumption by a specific date
If an affected agency continues to run afoul of the targets, the regular can potentially fine them up to $1,000 per day until it’s fixed. That number balloons to $10,000 per day if California is in a drought at the time it happens.
The other side of the equation is that agencies often need to invest in costly rebate programs, upgrade their infrastructure, fix leaks, and develop new reporting systems to stay compliant. All of this costs money at a time when there’s less to go around, which means it can end up on your bill as price hikes or fees.
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Can Conservation Save Money for Everyone?
Earlier, we pointed out that lower water bills mean less revenue for suppliers. While this is technically true, it’s a slightly narrow view. The SWB predicts that the savings from reduced demand could actually exceed the total cost of compliance by about $1.4 billion.
Agencies that buy from third-party suppliers, like the City of Burlingame, don’t have to buy as much in the first place, so their costs drop. As San Francisco’s Conservation Manager Julie Ortiz told CalMatters, it’s “always going to be more efficient to help reduce demand” than to develop new water sources.
Theoretically, this should mean that if enough people cut back on water waste like this at home, agencies won’t need to turn to costly stop-gap measures like rebates or face fines in the first place. Both you and the supplier will be saving money on either side.
Water Efficiency Upgrades That Help You Save
Water waste can happen in many different ways at home, and when it does, it can force you into paying a lot more for water than you really have to. Taking simple steps to be more mindful about how you use the water, how long you run the tap, and how you use your appliances is a great place to start.
The catch? Good habits will only take you so far. If you’re still using inefficient appliances, or you have hard water, you could be going through hundreds of gallons more than necessary every month. That means you won’t notice much of a difference.
Browse the chart below to see which upgrades make the biggest impact, what they usually cost, and how much they save the average American family over time.
| Upgrade | Typical Cost | Potential Savings |
| High-Efficiency Toilets | $150–$500 |
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| Low-Flow Showerheads | $20–$75 each |
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| Faucet Aerators | Just a few dollars each |
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| Smart Leak Detection* | $15–$600 (spot vs. whole home) |
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| Smart Irrigation Controller | $100–$250 |
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*We recommend smart leak detection systems for all Bay Area homes.
Reduce Your Upfront Costs with Rebates
At Caccia, we’re constantly looking for ways to help you save money without sacrificing your ability to enjoy the systems in your home. Explore our rebate directory to find incentives that can help you offset the cost of water-sparing updates like these now so you don’t miss out!
Stay Ahead of Mandates With Caccia’s Help
Drought conditions in California may be improving, but regulators aren’t likely to back down from putting pressure on agencies to cut consumption anytime soon. While we may be getting a temporary reprieve, it won’t last forever, so it’s essential that we all do our part to make conservation a way of life.
Caccia’s licensed plumbers and electricians can help you explore your options and find affordable ways to cut back on waste that don’t break the bank. Ready to start saving? Just send us a message.
Frequently Asked Questions About Managing Water Consumption
Who should I contact if I think my water bill is too high?
Start by contacting your local water supplier to review your account and usage history. In the Bay Area, that’s usually going to be SFPUC or BAWSCA.
If your bill suddenly increases without an obvious explanation, our licensed plumbers can help check for hidden leaks, running toilets, irrigation issues, and other sources of water waste.
How can I tell if my home is wasting water?
Unexpected increases in your water bill, damp spots in the yard, continuously running toilets, low water pressure, and unusually high meter readings can all indicate water waste. The best way to root it out and fix it is to schedule a plumbing inspection with one of our plumbers.
Which plumbing fixture usually wastes the most water?
Older toilets are often one of the biggest sources of unnecessary indoor water use. Toilets manufactured before 1994 can use 3.5 to 7 gallons per flush, while modern high-efficiency toilets typically use 1.28 gallons per flush or less.
Do I need to replace all my plumbing fixtures at once?
No, and in fact, it isn’t always what makes the most sense. Most homeowners see meaningful savings by upgrading one fixture at a time. Toilets, showerheads, faucets, and irrigation controls can usually be replaced individually as budget allows.
Are water-saving upgrades worth it if my water bill is already low?
Often, yes. Water-efficient fixtures can reduce both water and energy consumption, especially when they lower hot water demand. They may also help reduce the impact of future rate increases.
Can a plumber help me find water-saving rebates?
Yes! Our plumbers and electricians stay informed about local rebate programs and can help you identify qualifying equipment. You can also check your utility provider’s website or local conservation programs for current offers.
