Drawing insights from a comprehensive survey of more than 600 water professionals, the Black & Veatch 2025 Water Report highlights the trends, challenges and opportunities shaping the U.S. water industry. Explore this year’s report for expert analysis and the latest intelligence driving innovation and resilience for water utilities today.
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Introduction
Top challenges
Regulations
Contaminants
Cybersecurity
Climate change
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What are the top challenges facing the water, wastewater, and stormwater industry today?
#1
Aging water and wastewater infrastructure
Utilities constantly juggle competing priorities with limited budgets.
among 63% of respondents
CHALLENGE
Funding or availability of capital
#3
among 27% of respondents
Aging workforce/ hiring qualified staff
#2
among 39% of respondents
Addressing aging infrastructure with advanced water reclamation facility
Morro Bay Water Resources Center/Coastal California City
PROJECT STORY
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The City of Morro Bay’s aging wastewater treatment plant was located on the coastline, making it vulnerable to flooding from sea level rise; in fact, soon after the new facility was constructed, the old plant was severely damaged in a historic flood event and submerged in five feet of stormwater. Fortunately, the new facility avoided potential ecological and economic disaster. By constructing a new advanced treatment facility, Black & Veatch helped the city both solve direct flooding concerns and proactively address future water needs.
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How are utilities responding to proposed deregulation?
With each new election cycle comes regulatory and funding changes that impact downstream water utilities. Currently, deregulation is anticipated, and the question on everyone’s mind is how utilities are responding.
23%
Move money to other priorities
9%
Slow down pace of capital improvement projects
3%
Other
16%
Unsure
50%
We are not likely to make changes based on relaxing regulations
According to Black & Veatch’s 2025 Water Report survey, half of respondents do not plan to make changes to their priorities.
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say changes to climate policies will have NO IMPACT
37%
Climate policies
say that changes to PFAS regulations WILL IMPACT their approach to PFAS challenges
49%
PFAS regulations
How many respondents report having PFAS challenges, and how are they managing the cost to remediate?
While eliminating these harmful "forever chemicals" is a top priority, utilities are feeling the strain when it comes to the cost of compliance.
Cape Fear tackles PFAS
CAPE FEAR SWEENEY GAC CONTACCTORS ADDITION / Cape Fear Public Utility Authority
When per- and polyfluoroalkyl substances (PFAS) including GenX were discovered in its water supply, Cape Fear Public Utility Authority (CFPUA) addressed the contamination decisively with the expertise of Black & Veatch, implementing a new 44 million gallons per day (MGD) granular activated carbon (GAC) contactor facility.
According to a study conducted by Black & Veatch on behalf of the American Water Works Association, the estimated national cost for water systems to install and operate treatment to remove PFOA and PFOS to MCL levels exceeds $3.2 billion annually.
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How many respondents report detecting PFAS in their water supply?
46%
Nearly half of surveyed utilities report the presence of PFAS in their water systems.
51%
Raising rates
35%
Delaying infrastructure projects
10%
Canceling infrastructure projects
12%
Don't know
25%
How are utilities are coping with remediation costs?
None of the above
What progress are utilities making in cybersecurity?
As cyber threats grow increasingly sophisticated, the urgency for robust cybersecurity in the utility sector has never been greater.
Survey respondents echoed this concern, overwhelmingly citing “safety and public welfare” as the top driver for prioritizing security investments. Yet, progress remains uneven.
In the latest American Water Infrastructure Act (AWIA) assessment, only 31% of respondents reported that their cybersecurity risk remediation efforts were 76–100% complete, and another one-third admitted they didn’t know the status of their progress. The top answer to what organizations needed to improve their cyber posture was “training.”
How much progress has been made remediating cybersecurity risk?
31%
14%
7%
8%
33%
76-100% complete 51-75% complete 26-50% complete 0-25% complete Not started Don't know
What strategies are utilities using to address water supply challenges?
As climate change intensifies water supply challenges, confidence in the resiliency of water supply varies.
GWRS final expansion fortifies Orange County’s water supply
Groundwater Replenishment System Final Expansion/ Orange County Water District
The Groundwater Replenishment System (GWRS) in southern California is the world’s largest wastewater purification facility for indirect potable reuse (IPR). The system produces high-quality recycled water used to recharge the Orange County Groundwater Basin – the primary potable water supply for more than 2.5 million people. A final expansion of the GWRS was dedicated in 2023 and culminated nearly 50 years of collaboration between the Orange County Water District (OCWD) and Orange County Sanitation District (OC San), aided from the beginning by Black & Veatch, to bring water sustainability and resilience to their customers. With Black & Veatch leading the design, the final expansion project added 30 million gallons a day (mgd) to the system’s capacity, upping its total to 130 mgd, enough for 1 million people. It also enabled for the first time 100% of OC San’s reclaimable wastewater flows to be recycled.
In response to water supply challenges, what strategies are utilities prioritizing?
Just one third (34%) of survey respondents said they’re “very confident” in the resiliency of their water supply — down sharply from 45% in 2024.
45%
34%
29%
28%
water conservation
increasing water storage capacity above ground
watershed management
non-potable reuse
Top priorities
