Water bills keep going up. Some of that is normal – they’re supposed to rise with inflation.

But a new report from the Bank of America Institute shows that the average water bill has risen at nearly twice the rate of inflation in the past year — more than 7%.

There are two big causes. The first is climate, said Bank of America Institute economist Taylor Bowley: “Drought conditions were particularly high in the third quarter of 2024.”

The second is what Erik Olson with the Natural Resources Defense Council calls ancient infrastructure.

“A lot of our water treatment systems date back to the early 1900s,” he said.

Both of those problems hit the Midwest in 2024. It’s the only region that’s seen above-average water bill increases in both of the past two years.

The only solution, Olson said, is major investment in the country’s old water systems. And the good news is the U.S. has done that in the last few years.

“There was this Bipartisan Infrastructure Law that invested, like, over $30 billion in our water infrastructure,” he said. “But that expires next year, in 2026.”

Without more investment, he added that lower-income and rural communities that can’t afford upgrades won’t be able to provide clean water.