NTUA approves phased water, wastewater rate hikes starting this year

A McKinley County household on NTUA water and wastewater service could see its monthly bill climb from $55.08 in 2025 to $68.28 this year and $116.93 by the end of the phase-in in 2029. The Navajo Tribal Utility Authority Management Board approved that stepped increase on July 2, choosing the version that pushes bills higher faster in the first two years.

For water service based on 1,000 gallons, the average monthly charge is projected to rise from $35.37 to $40.68 this year, then to $44.75 in 2027, $49.22 in 2028 and $54.14 in 2029. Wastewater rises more sharply, from $19.71 to $27.60 this year, then to $38.64 in 2027, $50.23 in 2028 and $62.79 in 2029. The phased approach costs ratepayers slightly less over time than a steadier increase, but residents at public meetings warned that the higher bills would hit elders, low-income households and families already struggling with basic costs.

The board’s vote came after a final public hearing June 17 in Window Rock, Arizona, and 12 informational meetings that began in the spring. The new rates are needed to cover rising operating and maintenance costs tied to aging infrastructure, compliance obligations and environmental conditions. NTUA, which was established Jan. 22, 1959, to address the absence of utilities across the 27,000-square-mile Navajo Nation, said this will be its first water and wastewater rate hike since Jan. 1, 2020.

NTUA’s 2026 water and wastewater rate study was prepared by NewGen Strategies and Solutions, LLC. The Window Rock wastewater treatment plant handles an average influent flow of 443,750 gallons a day and costs about $1,750 a day to operate. Activated sludge treatment costs about $3.94 per 1,000 gallons treated, and overall daily wastewater operational costs can range from about $1,500 to $2,000.

The decision lands in a region where water remains scarce and expensive to move. More than 40 percent of Navajo households rely on water hauling for daily needs (Bureau of Reclamation), and Gallup’s groundwater levels have dropped about 200 feet over the past 10 years. The Navajo-Gallup Water Supply Project is designed to serve about 250,000 people and deliver 37,764 acre-feet of water annually from the San Juan Basin.