NYC Water Board Approves 6% Rate Increase. And There Was a Big Fight Today.

The NYC Water Board has officially approved a 6% increase in water and sewer rates, effective July 1, 2026.

The new rates will be:
• Water: $5.35/HCF
• Sewer: $8.50/HCF
• Combined: $13.85/HCF

(Sewer is always billed at 159% of the water rate — so when water goes up, sewer goes up with it.)

But here's what most people aren't talking about: the bigger fight at the Water Board this year was about the Rental Agreement.

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The Rental Agreement, Explained

The NYC Water Board doesn't own the city's water and sewer infrastructure — it leases it from the City under a 1985 agreement. Every year, the City can request a rental payment from the Water Board, essentially pulling money out of the water system and redirecting it to the City's general fund.

This year, the City asked for $321 million.

That's not going toward fixing your building's water pressure or upgrading aging pipes. That's money leaving the water system entirely — and ratepayers are the ones covering it.

Critics, including elected officials and property owners, have pushed back on this practice for years. Mayor de Blasio eliminated the rental payment during his administration, saving ratepayers over $1 billion. Mayor Adams ran on a promise to do the same — and then reinstated it. The 8.5% rate spike in 2024, the largest in over a decade, was driven largely by the rental payment. And now, here we are again.

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What This Means for Your Building

If your building is metered, your water and sewer costs will go up 6% starting July 1st. For multifamily properties, that adds up fast — and it compounds year over year.

Our team at Ashokan is already reviewing how this increase affects our clients and what steps you can take to offset rising costs. From leak detection and submetering to AquaSync monitoring and compliance audits, there are real tools available to help you manage your water spend.

Contact us if you'd like to talk through your options.