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State of the Water Industry Report

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2025 State of the Water Industry Report

Capital improvement funding rises to the top priority. The water sector has chosen financing capital improvements as its number one challenge in 2025, overtaking last year’s source water protection. Utilities of all sizes are struggling to secure funding for essential upgrades and new technologies, with only 41% feeling very or fully able to cover costs through rates and fees. However, investments in new treatment technologies and green solutions are expected to double in the next one to three years, indicating a growing focus on long-term sustainability.

The American Water Works Association’s (AWWA) annual State of the Water Industry report provides valuable insights into the challenges and priorities facing the water sector. This year’s report, based on a survey conducted in the fall of 2024, just before the U.S. presidential election, highlights key trends and emerging concerns. The report covers hot topics such as infrastructure renewal, financial matters, source water protection, water quality concerns, hazards and events, workforce, and more.

Discover how this year’s report offers a fresh perspective on the water industry’s most pressing challenges. With its comprehensive analysis of current trends and future projections, the State of the Water Industry report is an essential tool for water community professionals seeking to stay ahead of the curve.

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