Revitalizing America's water infrastructure: A path to resilience
- By Sophie Borgne
- 19 Nov 2025
- 5 min read
- Aging water infrastructure is a critical challenge: the U.S. faces daily pipe breaks, 16% water loss through leaks, and growing vulnerability to extreme weather, cyber threats, and workforce shortages—making renewal urgent.
- Digital and nature-based solutions drive resilience: smart sensors, predictive analytics, and digital twins can cut water loss by 15%, reduce energy use by 30%, and lower maintenance costs by 75%, while nature-based solutions improve stormwater management and water quality.
- Affordability and sustainability require innovation: tiered water rates, green and blue bonds, and ecosystem service payments help balance cost, conservation, and funding for critical upgrades.
- Collaboration is key to transformation: government policies, community initiatives, and partnerships with technology providers can shift U.S. water systems from reactive repairs to proactive, future-ready infrastructure.
The United States is facing a significant water infrastructure crisis, with outdated systems exacerbating challenges in water availability, affordability, and safety. As we navigate global environmental tipping points in technological advancements and societal developments, water business imperatives on efficiency and resilience can be met through innovative digital and community solutions that will transform US water infrastructure into a resilient, agile, and future-ready system.
The US water infrastructure is a vast and diverse network of pipes, dams, wastewater treatment facilities, and both private and public water systems. However, this infrastructure is aging and deteriorating, leading to inefficiencies, vulnerabilities, and significant water loss.
Approximately 16% of water is lost due to leakage, and there are about 700-800 pipe breaks in the US every day. The frequent pipe breaks and leaks contribute to water waste and pollution, exacerbating water scarcity and degrading aquatic ecosystems. The outdated infrastructure also struggles to cope with changing environments, such as more intense and frequent extreme weather events, which further strain water resources. Additionally, outdated facilities are more susceptible to cyber-attacks, and a large portion of the water workforce is nearing retirement, posing further risks to the system. All these impacts highlight an urgent need for comprehensive water infrastructure renewal.
To address these challenges, several innovative solutions have been proposed and implemented, focusing on enhancing water efficiency, improving water quality, and ensuring affordability.
Solution #1: Tiered water rates
While the US per capita water footprint is 1,802 gallons per day, the largest of any country, an estimated 17% of households, or about 28.3 million Americans, are unable to cover the price for basic water services. Tiered water rates are designed to balance water affordability and conservation. This pricing strategy sets low rates for basic water use, ensuring affordability for low-income households, while higher rates are applied to excessive water use, incentivizing conservation.
Irvine Ranch Water District
Solution #2: Nature-based solutions
Nature-based solutions (NBS) leverage natural processes to address water challenges, offering cost-effective and sustainable alternatives to traditional grey infrastructure. Examples of NBS include permeable pavements, green roofs, rain gardens, and wetland restoration. These solutions help manage stormwater, improve water quality, and enhance water storage and filtration.
New York City Water Supply
Solution #3: Digital infrastructure
Digital infrastructure, including remote monitoring equipment, smart sensors, digital portals, and predictive modeling, can significantly enhance the efficiency, reliability, and agility of water systems. These technologies enable real-time monitoring, predictive maintenance, and automated processes, reducing water losses and improving water quality. Digital solutions in water and wastewater treatment have the potential to optimize energy consumption by up to 30%, decrease water loss by 15%, and reduce the total cost of ownership by up to 20%.
Companies that apply a systems-thinking methodology that integrates digital transformation consulting with tailored roadmaps for utilities, supported by experts across cybersecurity, asset performance, energy management, and operational efficiency, can deploy smart water solutions that leverage AI, digital twins, and real-time analytics. This allows for easier, more efficient operations and collaboration with utilities and municipalities to co-develop scalable, future-proof infrastructure are seeing the following results:
- Up to 15% reduction in water losses and 30% energy savings through smart pumping and leak detection systems
- Up to 75% reduction in maintenance costs and 20% increase in uptime via condition-based maintenance and asset health monitoring
- $35,000 annual savings and 120M gallons of water conserved in US pilot projects using digital twins and unified operations centers
- Enhanced cybersecurity which addresses the top concern of 80% of US utilities (Black & Veatch, 2023), with end-to-end protection through real-time monitoring and IT/OT convergence
Solution #4: Innovative funding instruments
Innovative funding instruments, such as green and blue bonds, green loans, and payment for ecosystem services (PES), provide additional financial resources for water infrastructure projects. Green bonds and loans fund projects with positive environmental impacts, while blue bonds focus specifically on water-related projects. The World Bank committed $2.2 billion to green bond eligible projects in 2023, resulting in 17 million m³ (approximately 183 million square feet) of water savings and 12 million m³ (approximately 130 million square feet) of wastewater treated, reused, or avoided.
The transformation of the US water infrastructure requires a holistic approach that integrates innovative solutions, stakeholder collaboration, and sustainable practices. Government policies play a crucial role in setting regulatory standards, providing funding, and incentivizing resilient practices.
The Bipartisan Infrastructure Law (BIL) represented a historic investment in water infrastructure, allocating $55 billion to improve water systems, replace lead pipes, and enhance water quality. Although this was only a fraction of total required funding, it aims to address both immediate infrastructure needs and long-term sustainability goals – and has now been halted by the new administration. Additionally, regulatory frameworks, like the Clean Water Act (CWA) and Safe Drinking Water Act (SDWA), set standards for water quality and safety.
Finally, community initiatives, such as water cooperatives and local conservation programs, empower citizens to take an active role in managing and preserving their water resources.
By fostering collaboration between government, businesses, and communities, and incorporating digital solutions that significantly improve the operational efficiency and reliability of water systems, US water infrastructure can shift from a state of repair to one of renewal, ensuring clean, reliable, and affordable water for all and for generations to come.
For a deeper exploration of these dynamics and the actionable strategies they inform, access the Schneider Sustainability Research Institute report United States water infrastructure: From fixing leaks to regenerating the system.
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