Valley Water Rate Increase - July 1, 2022

Valley Water (VW), the water wholesaler for Santa Clara County, is raising water rates for all the water utilities it serves.  San Jose Water pays VW for:

- Imported water treated at one of the three VW water treatment plants
- Ground water pump taxes for water taken from our wells.

Effective July 1, 2022, VW is increasing rates to retailers like SJW by 15%. On average, a customer using 11 CCF, will see a monthly increase of around $5.71 or 5.74%. This is approximately $0.19 per day. Water rates will rise $0.3793 per CCF. One CCF = 748 gallons of water. 

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 info, please head to

Purchasing water and paying groundwater pump taxes are our #1 cost. Approximately 44 cents of every dollar collected goes back to Valley Water to cover the water supply cost.

Dollar bill shows breakdown of costs for 2022

What is the relationship between San Jose Water and Valley Water?

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

Where does SJW get its water from?

SJW has 3 sources of water: Imported, groundwater and local surface supply.