What is drought pricing?
Drought pricing is a tool used by water providers to incentivize customers to reduce water use, extend stored water supply and help ensure the utilities’ ongoing ability to operate and maintain their delivery system.
On April 8, 2026, the Denver Board of Water Commissioners approved temporary drought pricing effective May 1, 2026, through April 30, 2027. Denver Water’s drought pricing is applied to outdoor water use and uses the first quarter of 2026 as a baseline. Drought pricing is applied to treated water purchased by Bancroft Clover above the baseline.
On April 20, 2026, the Bancroft Clover Board adopted a temporary drought surcharge of $1.65/ thousand gallons, pricing beginning with bills produced after May 1, 2026, or until further action by the board.
How is drought pricing calculated?
When considering the drought surcharge, the Bancroft Clover Board wanted to encourage customer conservation and protect essential indoor water use. To meet these objectives, Tier 1 water use is exempt from the surcharge. All water use in Tiers 2 and up is subject to the drought surcharge. Drought surcharges are in addition to the normal water rate. The drought surcharge is a pass-through charge and will not be waived due to leaks.
Here is an example of a drought surcharge on a typical residential bill:
