Funding the Future of Safe Drinking Water: Fiscal Sustainability Amidst Growing Service Provision Challenges

Abstract The future of safe drinking water depends on fiscal sustainability amid growing service challenges. Aging infrastructure, changing water availability, increasing treatment demands, and shifting populations require more funding and threaten current revenue models. We analyze water utilities’ fiscal sustainability through multiple lenses: revenue structures heavily dependent on user fees, rising operational costs tied to regulatory compliance and infrastructure maintenance, and capital investment needs far exceeding available federal funding. To address these challenges, utilities must innovate in fiscal monitoring, revenue generation, cost control, and infrastructure financing. Solutions include dedicated revenue sources, pricing structures that balance affordability with adequacy, ecosystem service investments, and policies that create sustainable funding channels across demographic and geographic divides.