DENVER, April 30, 2026 /PRNewswire/ -- The American Water Works Association (AWWA) today announced the release of its 2026 State of the Water Industry (SOTWI) Report, which shows that infrastructure renewal and replacement is the top challenge among water sector professionals.

Following closely behind is how to finance infrastructure upgrades.

In the last decade, these two priorities — infrastructure and financing — have toggled back and forth at the top of the list of concerns for water professionals and executives. The issues take on increasing urgency as systems age and regulations evolve.

"Water utilities are operating in a fundamentally different financial environment than ever before," said AWWA CEO David LaFrance. "Aging infrastructure, new regulatory requirements, workforce availability, and emerging contaminants are colliding at the same time — and communities are feeling the financial tensions."

A recent AWWA analysis — titled "Beyond the Replacement Era: Balancing Compounding Infrastructure Needs with Household Availability"— shows that drinking water infrastructure needs will exceed $2.1 trillion over the next 25 years, requiring a 168% annual increase in capital investment. Homeowners' water bills could double in that time before accounting for inflation.

"Despite mounting challenges, water professionals continue to deliver safe, reliable water every day," LaFrance said. "This report reflects a sector that is adapting, innovating, and doing more with less — even as the demands placed on our systems continue to grow."

Other top concerns from water sector professionals in the State of the Water Industry report were:

• Long-term drinking water supply availability. One-third of utilities (33%) report that they are "borderline," meaning that an increase in withdrawal or a decrease in supply could result in water stress.
• Financial sustainability. Less than half of utilities (43%) are very to fully able to cover the costs of operations through rates and fees.
• Public understanding of the value of water sector systems and services. Among a list of 18 water system objectives, addressing customer service expectations ranked number five.

The report also includes water sector leaders' thoughts on generative AI, cybersecurity, and climate variability, among other topics.

AWWA has published the State of the Water Industry report since 2004. This year's report is based on a voluntary, anonymous survey of 2,171 water sector professionals from drinking water and wastewater systems across North America.

The full report and a corresponding executive summary are available on AWWA's website.

Established in 1881, the American Water Works Association is the largest nonprofit, scientific and educational association dedicated to managing and treating water, the world's most vital resource. With approximately 50,000 members, AWWA provides solutions to improve public health, protect the environment, strengthen the economy and enhance our quality of life.

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SOURCE American Water Works Association