San Diego Water Rates: Council Ends Tiered Pricing After Court Order
Starting in January, conservation incentives for single-family homes are removed, forcing low-use customers to pay roughly $6 more per month.
By Gabriela Ivanov ·

San Diego City Council members voted 6-2 on Tuesday to dismantle the city’s tiered water pricing system, a decision that shifts the financial burden of conservation from heavy users to those who drink and irrigate less. The new billing structure, which takes effect in January, eliminates the previous model where lower-volume consumers received a discount. As a result, the city estimates the average monthly bill for a low-use customer in a single-family home will rise by approximately $6. Conversely, high-use customers are projected to see their bills drop by $20.
The change is the direct consequence of a lawsuit filed in 2015. The legal action challenged the tiered system, which had rewarded homeowners for using water-efficient landscaping or installing pools with lower per-unit rates. After the city lost its appeal, a court ruling forced the adoption of a flat-rate structure based solely on volume consumed. San Diego is now responsible for a $40 million settlement stemming from the dispute.
City officials maintained that the shift was a legal requirement rather than a policy preference. A staff member presenting the agenda item to the council noted that the city disagrees with the ruling in the Daniel Patz et al. v. City of San Diego case but must comply to maintain a valid structure. Despite this legal compulsion, some council members expressed dissent. Sean Elo-Rivera, representing District 9, argued that the new system effectively punishes residents for their efforts to save water.
"It makes me angry because what is being imposed on us as a city and, therefore imposed, on the people of San Diego is a penalty for doing more to conserve water," Elo-Rivera said.
Residents in a region prone to drought have reacted with mixed feelings to the loss of conservation incentives. Isabel Jordan, a local resident, explained that she initially believed all customers should pay the same rate. However, she acknowledged the logic behind subsidizing efficient users given the constant water shortages in Southern California.
"I mean we’re in Southern California. We’re in a water crisis, water shortage constantly, in and out of drought, so at first I was like, ‘oh, everyone should pay the same rate,’ then I kind of understand the incentive behind subsidizing more efficient consumers of water," Jordan said.
The modified billing structure will launch in January, coinciding with the start of a separate, previously approved water rate increase. The city anticipates that households that have made specific efforts to conserve water will face the most noticeable monthly price adjustments.





