Bloomington, Indiana – Bloomington’s drinking water system is getting a new round of investment, and customers will begin seeing the cost of that work on their bills later this year.
The City of Bloomington Utilities has received approval for its 2026 water rate case, clearing the way for updated drinking water rates that will help pay for major infrastructure work across the local water system. The new rates were approved by both the Bloomington Common Council and the Utilities Service Board, following action on the proposal in September 2025.
The change marks the first increase to CBU water rates since January 1, 2024. It will raise CBU’s water revenue by 25%, giving the utility more funding for projects tied to treatment, distribution, maintenance and long-term reliability. The updated rates take effect in August and will first appear on September 2026 utility bills.
For the city, the rate case is not just a billing change. It is a bet on the pipes, pumps, tanks and treatment systems that most residents rarely see but depend on every day. Water comes out of the tap quietly. The work behind it does not.
“The 2026 water rate increase will allow CBU to address priority projects outlined in our Capital Improvement Plan, including essential improvements at the Monroe Water Treatment Plant and across our distribution system. By investing in this critical infrastructure today, we ensure CBU can continue meeting the community’s water needs now and in the future,” CBU Director Katherine Zaiger said.
A central focus of the new revenue will be continued improvements at the Monroe Water Treatment Plant. The funding will also support projects throughout the water distribution system, including replacement of aging water mains, upgrades to pumping and storage facilities, improvements to treatment processes, and modernization of system controls and monitoring equipment.
Those upgrades are meant to do several things at once: improve reliability, reduce water loss, keep drinking water quality high, and help CBU stay ahead of future problems instead of simply reacting after something breaks.
Additional money from the rate adjustment will also help cover rising operational costs, supply expenses, and regulatory requirements tied to running and maintaining the utility system. Like many public utilities, CBU is trying to balance the daily cost of service with the heavier cost of replacing aging infrastructure before it becomes a larger and more expensive problem.
For a typical residential customer, the increase will be modest in monthly terms but noticeable. A CBU residential customer with a 3/4-inch meter using 3,000 gallons of water per month will see monthly water charges rise from $26.06 to $29.78. That is an increase of $3.72 per month beginning in August 2026.
Actual customer impacts will vary depending on water use and meter size. Higher usage or different meter sizes may result in different bill changes.
CBU emphasized that the rate changes apply only to drinking water service. Sewer and stormwater charges are not affected by this water rate case.
Customers who want to review the full schedule of rates and charges can visit bloomington.in.gov/utilities/rates or stop by the Utilities Service Center at 600 E. Miller Drive. More information about the rate case is available at bloomington.in.gov/utilities/rate-case.
