Castle Rock Water Announces $500 Million Plan to Secure Supply

On January 1, 2026, Castle Rock Water rolled out a decade-long investment plan aimed at strengthening the town’s water system and accelerating a shift to a fully renewable water supply. The multi-hundred-million dollar program balances major upgrades to existing treatment and delivery systems with investments in imported renewable water capacity.

Officials cite rising energy, labor and materials costs as drivers shaping the utility’s budget. To cover those pressures while funding capital projects, the utility projects an average residential bill increase of about $4 per month effective in 2026. Rates are expected to rise roughly 4.5 to 5% annually over the next five years. Customers will see the new 2026 rates reflected on February bills, since usage is billed for the previous month. System development fees, which finance growth-related infrastructure, will increase by about 9% to reflect higher construction and renewable water costs.

Major capital work included in the plan spans treatment, distribution and water-source projects. Castle Rock Water is expanding the Plum Creek Water Purification Facility and enhancing the WISE imported renewable water system to bring more renewable supply into the town’s portfolio. Upgrades to filters at the Miller and Meadows treatment plants are scheduled to improve treatment reliability. Planned infrastructure work also includes rehabilitation of a wastewater lift station, stabilization of the Paintbrush Park pond, and a 2027 water line replacement in the Young American neighborhood.

Financially, the utility operates on a cost-recovery model without profit or tax support, relying solely on rates and fees. Castle Rock Water typically collects funds before projects begin to minimize debt exposure and conducts an annual review of rates and fees to adjust for changing costs. The utility has emphasized a strategy of gradual increases to limit sudden impacts on customers. When compared to other Colorado communities, Castle Rock’s rates are mid-range, according to the town’s analysis.

Local impacts will include steadier long-term supply resilience and improved treatment capacity, at the expense of modest short-term increases in household water costs and higher growth-related fees for builders and developers. Residents concerned about affordability or project timing can monitor the utility’s annual rate reviews and budget materials and find detailed information at CRgov.com/Water. The investment program marks a significant institutional commitment to renewable supply and infrastructure upkeep as Castle Rock manages growth and higher operating costs.