As the county's primary water wholesaler, Valley Water makes sure there is enough safe, clean water for homes and businesses. To finance this monumental task, Valley Water collects revenue primarily from property taxes, well owners, agricultural water customers, and water retailers, such as San Jose Water Company.

Most county residents do not pay a bill directly to Valley Water, instead they pay their local water retailers. The cost local residents pay the retailers, however, is affected by the cost to Valley Water of supplying that water.

Valley Water’s major costs include operations, debt service, capital improvements to the treatment and delivery system, and water purchases from outside the county.

To avoid large charge increases in any year, Valley Water develops 10-year projections so that charges can be increased gradually when needed.

Each year Valley Water conducts a public review process to set water charges for the coming year.
Information about the recent process is here

How can you lower your water bill?
Save water and money through conservation

What are the current water charges?

Valley Water is a water wholesaler. The following charges reflect what water retailers and agricultural users pay for wholesale or well water.

The "2026-27 Protection and Augmentation of Water Supplies" or PAWS 2026 Report, presents the financial and water supply information that forms the basis for the fiscal year 2026-2027 wholesale water charges. Valley Water released the PAWS 2026 Report on February 27, 2026, in compliance with the District Act and other legal requirements as part of its wholesale water rate-setting process.

Valley Water has four groundwater benefit zones ensuring ratepayers are grouped in a way that reflects the most recent and relevant data regarding the services and benefits received by well users. 

Operations, infrastructure, and rate structure are separate for each zone. The North County groundwater benefit zone is referred to as Zone W-2 and encompasses the Santa Clara Subbasin in North Santa Clara County. In the South County, the three groundwater benefit zones are as follows: Zone W-5, which encompasses the Llagas Subbasin; Zone W-7, which encompasses the Coyote Valley; Zone W-8, which encompasses areas in the foothills southeast of Uvas and Chesbro reservoirs.

Questions about retail water charges should be addressed to the appropriate retail water agency.
 

Adopted Water Charges for Fiscal Year 2026-27 (effective July 1, 2026)

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Notes
*The total surface water charge is the sum of the basic user charge (which equals the groundwater production charge) plus the water master charge
**The total treated water contract charge is the sum of the basic user charge (which equals the groundwater production charge) plus the contract surcharge
***The total treated water non-contract charge is the sum of the basic user charge (which equals the groundwater production charge) plus the non-contract surcharge

AF = acre-feet
Ag = agricultural
Non-Ag = municipal and industrial