America’s water infrastructure is under increasing pressure — not just from age, but from rising costs, new regulations and long timelines to complete projects.

A new report from the National League of Cities, which represents nearly 3,000 local governments nationwide, offers a snapshot of how municipal leaders view the condition of their infrastructure. The survey results, published in Municipal Infrastructure Conditions, show a notable shift in how cities rate their drinking water and wastewater infrastructure compared with just four years ago.

In 2022, roughly 82% of respondents gave their drinking water and sewer or stormwater infrastructure an A or B rating. In 2026, that number dropped sharply to 39%.

The decline does not necessarily mean systems are rapidly deteriorating, but rather it reflects growing awareness of the challenges utilities face — including increasingly complex regulations (i.e. lead pipe replacement and addressing PFAS, commonly called the “forever chemicals”), the high cost of maintaining underground infrastructure and the long timelines required to plan and complete upgrades.

Local governments remain at the center of this issue. The report notes that cities and towns fund more than 98% of all capital, operations and maintenance investments for drinking water and wastewater systems. Nationwide, they oversee more than 50,000 community drinking water systems and 16,000 wastewater treatment facilities.

These findings align with broader concerns across the water sector. A recent report, Beyond the Replacement Era: Balancing Compounding Infrastructure Needs with Household Affordability, highlights the scale of the challenge ahead.

That analysis estimates U.S. drinking water systems will need between $2.1 trillion and $2.4 trillion in investment by 2050 to maintain and modernize infrastructure.

For customers, the implications are significant. If utilities rely primarily on local water bills to cover these costs, the average household’s annual drinking water bill could climb from about $429 today to nearly $1,000 by 2050 — before adjusting for inflation.

Together, the reports paint a clear picture: maintaining safe, reliable water systems will require sustained investment, thoughtful policy solutions and a careful balance between infrastructure needs and affordability for the families who rely on these essential services every day.