We have updated our Privacy Policy. Our policy describes how we may collect, use, process and share your personal information. We use cookies which vary by type and jurisdiction. Visit the Your Privacy Choices link at the bottom of our website, which describes cookies we use and how to manage them.

2025 Valley Water Rate Increase

Effective July 1, 2025

Valley Water (VW), the wholesale water provider for Santa Clara County, is increasing its water rates effective July 1, 2025. These changes will affect all water retailers in the county, including San Jose Water (SJW).

SJW purchases water from VW in two ways:

  • Imported water treated at one of the three VW water treatment plants
  • Groundwater pump taxes for water taken from our wells

Effective July 1, 2025, due to the increase in wholesale water rates from VW, the average residential customer with ¾ inch meter using 10 CCF (centrum cubic feet) per month will see an increase of approximately $5.15 per month or 3.76%. The current average bill is $136.79 will increase to $141.94.

All monies collected for this rate increase go directly to VW and are known as a “pass through.” SJW does not benefit from this rate increase. For more information, please visit valleywater.org.

Purchasing water and paying groundwater pump taxes represent the largest portion of SJW’s operating costs - approximately 43 cents of every dollar collected goes back to VW to cover the water supply cost.

Separately, SJW is also recovering costs related to the deployment of Advanced Metering Infrastructure (AMI or Smart Meters). Beginning July 1, 2025 through June 30, 2026, customers with ¾ inch meter using 10 CCF/month will see an additional $1.57 increase or 1.11% on their monthly bill.  The current average bill will increase from $141.94 to $143.51.  To learn more about our Smart Meter program and its benefits, visit sjwater.com/smartmeters.

Rate increase chart 2025
Water bill comparison chart 2025
Monthly service charge comparison chart by meter size 2025
See last year's rate increase here.

FAQ

What is the relationship between SJW and VW?

  • SJW pays imported water charges and groundwater fees to VW.
  • SJW buys “imported” water from VW’s three water treatment plants: Rinconada, Santa Teresa and Penitencia.
  • SJW also pays a groundwater pump tax to VW when we pump water from our wells.
  • We have approximately 100 wells throughout our service area.
  • VW is responsible for managing the county’s groundwater basin.

Where does SJW get its water from?

SJW has three sources of water: imported, groundwater and local surface supply.