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Under mounting public pressure, the Great Lakes Water Authority’s (GLWA) board voted Wednesday to scale back its proposed water rate hike, approving a 5.9% increase for water and 4.5% for sewer services—still marking the largest rate hike in the authority’s decade-long history. Originally, the authority had proposed a 7.73% water rate increase and a 5.39% sewer rate hike for the upcoming fiscal year, which starts July 1. The unanimous decision comes as the authority, which serves 112 communities across eight counties in southeast Michigan, faces scrutiny over its fiscal 2026 and 2027 budgets.
According to GLWA, the price hike is necessary to address aging infrastructure, improve water quality, and meet federal regulatory requirements. This price adjustment is the first major hike in water rates since 2019.
The Great Lakes Water Authority supplies water to over 4 million residents in the Metro Detroit area. However, it has faced challenges in maintaining its network of water treatment plants and pipelines. As the infrastructure ages, it requires more frequent repairs and updates, many of which are costly. Currently, residents in Southwest Detroit are recovering from a recent break in a 54-inch steel water transmission main that occurred at Beard and Rowan on Monday, February 17.
Residents in Metro Detroit expressed strong opposition during a GLWA board meeting when the authority approved rate hikes of 3.25% for water services and 3% for wastewater services. They argued that these increases would further strain families already struggling with rising living costs. Among them was Valerie Jean, a grassroots activist known for holding city officials accountable.
“Rate increases for the city of Detroit have since the early 2000s went up 400%, literally 400%, resulting in mass water shutoffs in 2014 that harmed people, and they actually died,” Jean said.
“It’s absolutely unconscionable right now to consider a rate increase when nobody can sign up for the Lifeline program, and there’s not an up-and-running Wrap program in Detroit.”
The Michigan Chronicle contacted Wayne Metro Community Action Agency for comment.
“The program is closed to Detroit residents,” stated a Wayne Metro Community Action Agency representative.
When asked about the anticipated date for future water bill assistance, the representative replied, “We have not yet been informed of a future opening date.”
In the coming weeks, GLWA plans to hold informational sessions to educate residents about the reasons behind the price hike and how the additional funds will be allocated. The authority is also encouraging customers to explore water conservation programs to help offset the increase.
The regional authority has lifted a key restriction on water and sewer rate increases, marking the first time it can exceed the 4% cap known as the “4% promise” that was imposed since GLWA was established in 2014 following Detroit’s bankruptcy. With the cap set to expire June 30, rates for water and sewer services had already risen by 2.75% in fiscal year 2024.
The hike comes at a time when utility bills across the country have been rising due to inflation and global supply chain disruptions. While GLWA’s decision is largely focused on addressing infrastructure needs, experts say the increase may exacerbate financial stress for households already grappling with rising costs of living.
Nicolette N. Bateson, Chief Financial Officer and Treasurer of GLWA emphasized that the guiding principle in developing the budget and charges has been a priority commitment to balance the regional system’s budgetary needs with concerns about overall affordability.
“No decision is made today without understanding how it impacts the future, the environment, and those we serve,” Bateson said.
“We understand that this charge increase will have an impact on our member partners and, in turn, the residents of the communities we both serve. No one wants to implement charge increases, but in order to responsibly manage and maintain the regional system, is it essential.”
The newly approved budget allocates funding for the Great Lakes Water Authority’s (GLWA) Linear System Integrity Program (LSIP), a key initiative that evaluates the regional transmission pipes and identifies critical opportunities for renewal and replacement. This program plays an essential role in enhancing the resilience and long-term management of GLWA’s infrastructure.
GLWA reported residents and business owners across the region may face varying water costs, as the Great Lakes Water Authority (GLWA) service charges are only one piece of their total bill. While GLWA’s fees contribute to water expenses, each municipality adds its own local charges to maintain its system, meaning the GLWA portion can fluctuate depending on the community. Ultimately, it is up to each municipality to set the final rates passed on to residents and businesses.
Gary Brown, a board member of the GLWA and director of Detroit’s Sewerage and Water Department, acknowledged that while the proposed rate hikes for the 2026 fiscal year may not meet everyone’s expectations, they are designed to strike a balance with affordability for Detroit residents. However, whether these increases will ultimately impact residents across the region remains uncertain, as local governments, not GLWA, determine how these charges are passed on to consumers.
While the price hike is still a point of contention, GLWA’s long-term strategy centers around ensuring a sustainable water system capable of withstanding the challenges of a changing climate and growing population.
As the debate continues, residents of Metro Detroit will be left to adjust to the new reality of higher water rates starting next month, with many hoping that the investment will ultimately result in more reliable and cost-effective service.
Local leaders urge GLWA to consider alternative solutions to minimize the impact on residents and businesses. Highland Park Water Director Damon Garret called for rate “charges to be re-evaluated, [and] reduced.”
“The charges are not proportionate or representative of the consumption,’ Garret stated in a letter addressed to GLWA Wednesday afternoon.
“And how could they be? The system is unmetered. The installation of the water master meters, currently under construction, will reduce the water consumption, ambiguity and collection of sewer volumes from installed sewer meters will reduce ambiguity associated with sewer volumes as a result of these projects, Highland Park expects our charges to be re-evaluated, reduced, thus the additional financial burden placed on the citizens and our retail customers will be relieved.”