The San Antonio Water System (SAWS) is entering a pivotal period as it faces growing financial pressures, aging infrastructure, and ongoing drought conditions all while balancing affordability for residents and supporting one of the fastest-growing cities in the nation.
For the fifth consecutive year, SAWS is holding water and sewer rates steady in its 2025 budget, but officials have signaled a likely request for a rate increase in 2026. The increase would help fund long-delayed upgrades to wastewater treatment plants, replacement of aging pipelines, and new capacity to meet future growth.
Drought conditions persist across much of South Texas. Despite recent rain, outdoor watering restrictions remain in place. SAWS is leaning on its diversified supply portfolio, now drawing from 13 different sources beyond the Edwards Aquifer, but water conservation remains a pressing concern.
Water quality remains another key issue for public trust. Earlier this year, SAWS reported an E. coli detection in a raw-water sample on the Far West Side, though the contamination was treated before reaching customers. The utility continues to monitor for PFAS “forever chemicals” and releases detailed annual water quality reports to assure residents of safety and transparency.
SAWS also faces scrutiny over growth and development. A proposed wastewater facility at Guajolote Ranch, near the Edwards Aquifer recharge zone, has drawn concern from city leaders and environmental advocates.
One of the newest flashpoints for SAWS is its proposal to relocate a downtown chilled-water plant to make way for the city’s proposed Project Marvel redevelopment near the Alamodome. The chilled-water facility supplies cooling for several downtown buildings including the convention center. Its move could cost more than $200 million, according to SAWS. Utility officials insist that ratepayers will not bear the expense, saying the relocation will be covered through project-specific financing tied to redevelopment partners.
Additional flashpoints include SAWS’ first-ever lien on an apartment complex for unpaid bills, the mayor’s proposal to raise the utility’s contribution to the city’s general fund, and questions over the $200 million relocation of a downtown chilled-water plant tied to redevelopment plans.
Taken together, these challenges underscore the pressures on SAWS to maintain affordability, reliability, and public trust. As San Antonio continues to grow and climate conditions tighten, the decisions made now could shape how — and at what cost — the city secures its water future.
Guest:
Robert Puente is the President and CEO of the San Antonio Water System.
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This interview will be recorded live Thursday, Nov. 6, 2025.
