What’s Flowing Next for Water Infrastructure Trends

The Foundation is Cracking: Drivers of the Global Water Challenge

 Our world relies on robust water infrastructure. Yet, many of these vital systems are aging rapidly. They struggle to meet growing demands. We face a future where water scarcity and stress become more common. This is driven by population growth, urbanization, and the undeniable impacts of climate change.

The need to adapt and innovate has never been greater. We must move beyond simply maintaining existing systems. We need to build truly resilient and sustainable water networks for the future. This requires not only strategic planning but also reliable infrastructure components for critical applications.

We will explore the key water infrastructure trends shaping our world. We’ll dig into the challenges posed by aging assets and environmental shifts. Then, we will look at how digital technologies, new funding approaches, and sustainable solutions are changing the sector. Join us as we chart the course for what’s flowing next in water infrastructure.

The integrity of our global water infrastructure is under immense pressure. We are witnessing a convergence of factors that threaten water security worldwide. These include rapidly aging systems, the escalating impacts of climate change, and a growing mismatch between water supply and demand. Governments, industries, and civil society face increasing risks as these trends accelerate.

The State of Aging Systems

Much of the developed world’s water infrastructure was built decades ago, with some components exceeding a century in age. For instance, in Toronto, over 6,000 km of watermains exist, with 13% being 80-100 years old and 11% over 100 years old. This aging network leads to an average of 1,400 watermain breaks annually in the city alone. Across Canada and the United States, an astonishing 700 watermain breaks occur every day, incurring costs exceeding (Cdn.) $10 billion per year.

This widespread deterioration is not just an inconvenience; it represents a significant vulnerability. The U.S. loses an estimated 2.1 trillion gallons of water each year from breakdowns in infrastructure, a staggering amount equivalent to over 50 million Olympic-sized swimming pools. Indeed, 79% of companies in the private sector identify aging infrastructure as the biggest challenge facing the water industry. Many of the nation’s more than 16,000 publicly owned water and wastewater treatment facilities are nearing the end of their useful lives.

The consequences of this decay are profound. Pipe lifespan is decreasing, lead service lines remain a critical public health concern, and maintenance backlogs continue to grow. This situation is exacerbated by population migration, which increases pressure on urban and suburban infrastructure, particularly in water-stressed regions like the U.S. West and Southwest, necessitating more water and wastewater treatment facilities.

Common infrastructure failure points include:

• Pipe corrosion and material fatigue
• Valve failure and operational inefficiencies
• Pump breakdown due to age and wear
• Treatment plant decay and outdated processes
• Leakage from deteriorating distribution networks

Climate Change as a Threat Multiplier

Climate change is not merely an environmental concern; it is a profound threat multiplier for water infrastructure. Increasingly erratic and extreme weather patterns are directly impacting water availability and quality. We are seeing intensified droughts, leading to severe water scarcity for at least one month of the year for at least four billion people globally, with nearly 500 million experiencing year-round scarcity.

Conversely, increased flooding events overwhelm existing stormwater and wastewater systems, leading to overflows and contamination. Sea-level rise poses a direct threat to coastal water infrastructure, causing saltwater intrusion into freshwater aquifers and contaminating supplies. These climate impacts degrade water quality and strain treatment capacities, making the provision of safe, reliable water even more challenging. The Office of the Director of National Intelligence highlights these environmental shifts as key drivers of future global instability, underscoring the urgent need for resilient water infrastructure.

The Mismatch Between Supply and Demand

Beyond infrastructure decay and climate impacts, a fundamental imbalance is emerging between global water supply and demand. Global water use is projected to increase by 20 to 50 percent above current levels by 2050. This surge is driven by several interconnected factors:

• Population Growth: A growing global population naturally translates to higher demand for drinking water, sanitation, and food production.
• Urbanization: As more people move to cities, pressure intensifies on existing urban water systems, which often struggle to expand at the same pace as population density.
• Inefficient Agricultural Practices: Agriculture accounts for the largest share of freshwater use, with demand expected to rise by 19 percent by 2050. By 2040, about 40 percent of all irrigated agriculture is expected to face extremely high water stress. Traditional irrigation methods are often highly inefficient, leading to significant water losses.
• Industrial and Domestic Sectors: While agriculture is the largest consumer, industrial and domestic sectors are growing at the fastest pace. This includes increased water use for manufacturing, energy production, and household consumption driven by changing lifestyles.
• Environmental Degradation: Pollution from industrial and municipal wastewaters further reduces the available supply of clean water. Globally, about 80 percent of industrial and municipal wastewaters are discharged untreated into waterways that communities rely on. This not only contaminates water sources but also exacerbates the challenge of providing safe water.

These converging trends create a precarious situation for water security, demanding immediate and strategic interventions to ensure a sustainable future.

The Ripple Effect: Economic and Social Consequences of Water Insecurity

The challenges facing water infrastructure extend far beyond the pipes and pumps themselves. Water insecurity has profound economic, social, and health impacts, creating a complex web of consequences that affect communities and economies worldwide.

Economic and Health Crises

The economic impacts of water insecurity are substantial. Breakdowns in water infrastructure lead to direct costs associated with repairs, emergency responses, and lost water. For instance, the estimated $110 billion funding gap in the U.S. water utility sector for 2024 highlights the scale of underinvestment. These costs are often passed on to consumers, with average monthly household water bills increasing by roughly 64% between 2012 and 2023 in the U.S. Business disruption also occurs when water supplies are unreliable, affecting industries from manufacturing to tourism.

Beyond direct financial costs, water insecurity poses significant health risks. As of 2020, about 2.1 billion people worldwide lack access to safe drinking water or reliable water service. The discharge of untreated wastewater into waterways used for drinking, bathing, and agriculture contributes to widespread waterborne diseases. This leads to increased healthcare burdens, reduced productivity, and, in severe cases, mortality. The human health and environmental risks associated with emerging contaminants like PFAS (Per- and polyfluoroalkyl substances) further complicate water quality management, requiring advanced and costly treatment solutions.

Socially, water insecurity can lead to unrest and displacement. When communities lack access to basic water services, it can fuel discontent and instability, particularly in regions already facing resource competition.

The Hidden Costs of Leaks and Inefficiency

One of the most insidious consequences of deteriorating water infrastructure is the massive amount of water lost through leakage, often referred to as “non-revenue water” (NRW). This lost water represents a significant financial drain and an environmental burden. For example, a leakage rate of 10% is typical in Ontario municipalities, with some reporting levels upwards of 40%. The Town of Newmarket reported approximately 21.47% NRW in 2018, resulting in $5.3 million per year in lost revenues.

Beyond the lost water itself, there are significant hidden costs, particularly related to energy consumption and carbon emissions. The entire process of treating, pumping, and distributing water is highly energy-intensive.

The energy used to operate water and wastewater systems in Ontario alone costs municipal taxpayers about $260 million each year. Water and wastewater systems combined are the largest source of Greenhouse Gas (GHG) emissions for the City of Toronto, estimated at around 30-35%. This highlights the critical water-energy nexus – the interconnected relationship between water and energy, where water is needed for energy production and energy is needed for water treatment and distribution.

When water leaks from the system, the energy used to treat and pump that water is wasted. Fixing leakage in a single section of the water system in York Region saved 139,000 m³/year in water, $426,000/year in cost, 102 MWh/year in energy, and 4.1 tonnes of CO2/year. A 5% reduction in water distribution system leakage across North America would save 270 million gallons per day of water and 313 million kWh of electricity annually, equivalent to the electricity use of over 31,000 homes. These figures underscore that addressing leakage is not just about conserving water; it’s a powerful strategy for reducing energy consumption, cutting operational costs, and lowering carbon emissions, contributing significantly to overall system efficiency and sustainability.

A Wave of Innovation: Key Water Infrastructure Trends

Despite the daunting challenges, the water sector is experiencing a wave of innovation, driven by technological advancements, new funding mechanisms, and a growing emphasis on sustainability. These trends are reshaping how we manage, maintain, and upgrade our vital water infrastructure.

The Rise of Digital Water: A Top Water Infrastructure Trend

Digital change is at the forefront of modern water management. Utilities are increasingly leveraging data and smart technologies to improve efficiency, reduce losses, and improve resilience.

• IoT Sensors and Smart Metering (AMI): The deployment of Internet of Things (IoT) sensors throughout water networks allows for real-time data collection on flow, pressure, and water quality. Smart metering, or Advanced Metering Infrastructure (AMI), provides granular consumption data, enabling utilities to identify leaks, manage demand more effectively, and improve billing accuracy. Dubai, for example, has deployed over 2 million smart electricity and water meters.
• Predictive Analytics and AI: Moving beyond reactive maintenance, utilities are adopting predictive analytics and Artificial Intelligence (AI) to anticipate equipment failures and pipeline breaks. By analyzing historical data and real-time sensor inputs, AI models can forecast potential issues, allowing for proactive interventions and preventing costly disruptions. This shift towards data-driven decision-making is crucial for optimizing asset management.
• Digital Twins: Digital twins are virtual replicas of physical water infrastructure, allowing operators to simulate various scenarios, test operational changes, and monitor performance in real-time without impacting the actual system. This technology enables better planning, design, and optimization of complex water networks.
• Advanced Leak Detection Technology: Innovations in leak detection, including acoustic sensors, satellite imagery, and drone technology, are making it easier to pinpoint leaks quickly and accurately. The Infrastructure Leakage Index (ILI), a performance metric, shows that utilities like Halifax Water have significantly reduced their ILI from 6.4 in 1999 to 2.4 in 2014, demonstrating the effectiveness of targeted leakage control. These technologies are critical for reducing non-revenue water and conserving precious resources.

The adoption of digital technologies is revolutionizing water management, moving it from a traditional, often reactive, sector to a proactive, data-driven industry. Water Technology Trends 2025 highlights how digital change is revolutionizing water management.

New Funding and Policy Models

Addressing the massive funding gap in water infrastructure requires innovative financial and policy frameworks.

• Infrastructure Investment and Jobs Act (IIJA): In the U.S., the IIJA represents a landmark commitment, allocating $55 billion for water and wastewater projects and $1.4 billion for stormwater infrastructure. While significant, this funding still leaves substantial gaps, with an estimated $81 billion needed for wastewater and $434 billion for stormwater over the next decade. Administering these funds remains challenging, as it largely happens at the state and local levels.
• Public-Private Partnerships (P3s): P3s are gaining traction as a means to leverage private capital, expertise, and efficiency for large-scale water projects. These partnerships can accelerate project delivery and share risks between public and private entities. The acquisition of MWH by Obayashi Corporation, a leading water infrastructure contractor, highlights the growing interest in delivering large-scale water infrastructure projects through such models.
• Performance-Based Incentives: Shifting towards performance-based funding models incentivizes utilities to achieve specific outcomes, such as leakage reduction, energy efficiency, or improved water quality. This approach ties funding to measurable results, promoting accountability and innovation.
• State Revolving Funds (SRFs): These low-interest loan programs, funded by federal appropriations, remain a cornerstone of water infrastructure financing. However, their capacity needs to be significantly expanded to meet the growing demand.
• Valuing the True Cost of Water: There’s a growing recognition of the “true cost of water,” which includes not only direct operational expenses but also environmental externalities, resource depletion, and the cost of resilience. By accurately valuing water, utilities can better justify investments in conservation, reuse, and infrastructure upgrades, and assess the return on investment for water conservation, water reuse, and watershed restoration projects. However, only 20% of water utilities reported being fully able to cover the cost of drinking water services through their rates, even as ratepayers’ bills continue to rise.

These new funding and policy models are essential to bridge the investment gap and ensure the long-term sustainability of water infrastructure. The Currents of Capital 2025 Report indicates significant growth projections for water investment, with 96% of senior stakeholders planning to maintain or increase their water sector investments in 2025. This reflects a growing understanding that water is not just a public good but a critical economic input, demanding specialized investment approaches.

Sustainable Solutions and Other Water Infrastructure Trends

Beyond digital and financial innovations, the industry is embracing a range of sustainable solutions to improve water security and environmental stewardship.

• Water Reuse and Recycling: As water scarcity intensifies, treating wastewater to a high standard for reuse is becoming increasingly critical. California, for example, is planning to adopt sewage reuse for drinking water. The European Investment Bank is also integrating wastewater as a resource into its sustainable development agenda. Companies like Renovo Resources and Infinity Water Solutions are building infrastructure to recycle water, particularly in water-stressed regions like the Permian Basin, where water demand is outpacing supply.
• Desalination Advancements: Desalination, the process of removing salt from seawater or brackish water, is becoming more energy-efficient and cost-effective, making it a viable option for freshwater supply in arid regions. New projects are integrating renewable energy sources, such as solar and wind power, to reduce the carbon footprint of desalination plants.
• Stormwater Harvesting and Green Infrastructure: Capturing and treating stormwater runoff for beneficial use reduces pressure on potable water supplies and mitigates flooding. Green infrastructure solutions, such as permeable pavements, rain gardens, and wetlands, help manage stormwater naturally, improve groundwater recharge, and improve urban resilience.
• Regulatory Changes for Emerging Contaminants like PFAS: The increasing awareness of “forever chemicals” like PFAS is driving new regulations and treatment requirements. The EPA has proposed the first-ever national standard for PFAS in drinking water, aiming for levels as low as 4 parts per trillion. This necessitates significant investment in advanced treatment technologies and places new demands on water utilities.

These sustainable solutions, coupled with the need for reliable infrastructure components that align with current water infrastructure trends, are crucial for building water systems that are not only efficient but also environmentally responsible and resilient to future challenges.

Charting the Course for a Resilient Future

Ensuring resilient, efficient, and sustainable water infrastructure for the future requires a holistic and integrated approach. It involves learning from successful initiatives, implementing best practices, and fostering collaboration among all stakeholders.

Lessons from Leading Jurisdictions

Jurisdictions that have made significant strides in water infrastructure management offer valuable lessons:

• Proactive Asset Management Plans: Leading utilities have moved from reactive “fix-it-when-it-breaks” models to proactive, risk-based asset management. This involves comprehensive data collection, condition assessment, and predictive maintenance to prioritize investments and extend asset lifespans. Only about 30% of U.S. utilities have fully implemented an asset management plan, highlighting a significant area for improvement.
• Successful Leakage Reduction Programs: Cities like Halifax Water, which reduced its Infrastructure Leakage Index (ILI) from 6.4 to 2.4, demonstrate that significant water and energy savings are achievable through active leakage control, pressure management, and the use of District Metered Areas (DMAs). The City of Guelph also saved 3.7 million m³ of water and $300,000 in electricity between 2006 and 2014 through similar efforts.
• Risk-Based Infrastructure Prioritization: Instead of uniform replacement schedules, successful programs prioritize repairs and upgrades based on asset criticality, risk of failure, and potential impact on service and public health. This ensures that limited resources are directed where they can have the greatest effect.
• Shifting from Reactive to Predictive Maintenance: By investing in digital tools, sensors, and analytics, utilities can anticipate failures before they occur, scheduling maintenance more efficiently and minimizing disruptions. This transition is key to improving operational efficiency and long-term system reliability. Many municipalities, like those served by International Valve in their projects, are adopting these advanced strategies.

Recommendations for Stakeholders

To build a resilient water future, policymakers, utilities, and the private sector must work in concert:

• For Policymakers:
• Sustained Funding: Commit to long-term, predictable funding for water infrastructure, recognizing it as a critical national security and economic asset. The Infrastructure Investment and Jobs Act is a good start, but sustained investment is needed.
• Clear Regulations and Incentives: Establish clear, consistent regulatory frameworks that encourage innovation, water conservation, and the adoption of advanced technologies. Provide incentives for utilities to invest in efficiency, resilience, and emerging contaminant treatment.
• Interagency Coordination: Strengthen coordination among water, energy, and agriculture ministries to manage shared resources holistically and implement the water-energy-food nexus approach.
• Data Standards: Mandate province- or state-wide data quality standards and audits to support evidence-based decision-making and performance benchmarking.
• For Utilities:
• Technology Adoption: Accept digital water solutions, including IoT, AI, and digital twins, to optimize operations, detect leaks, and improve asset management.
• Workforce Training: Invest in training and upskilling programs to equip the workforce with the necessary digital and technical skills to manage modern water systems.
• Asset Management Plans: Fully implement and regularly update comprehensive asset management plans, prioritizing investments based on risk and lifecycle costs.
• Community Engagement: Engage with communities to build trust, explain the “true cost of water,” and foster public acceptance of new solutions like water reuse. Municipalities play a crucial role in this dialogue.
• For the Private Sector:
• Investment in Innovation: Continue to invest in research and development of new water technologies, from advanced filtration to smart monitoring systems.
• Cross-Sector Collaboration: Seek partnerships with public utilities, research institutions, and other industries to develop integrated solutions and accelerate deployment. Public-private partnerships are vital for closing funding gaps and bringing innovative solutions to scale.
• Sustainable Practices: Integrate sustainability principles throughout the value chain, from manufacturing processes to the lifecycle impact of products and services.

By taking these actionable steps, we can collectively chart a course towards a more secure, efficient, and sustainable water future. Every dollar invested in water systems yields exponential returns in public health, economic growth, and environmental protection.

Conclusion

The trends shaping water infrastructure are clear: a confluence of aging systems, increasing demand, and climate change impacts presents unprecedented challenges. Yet, this era also brings an unparalleled opportunity for change. We are entering a period where digital innovation, smart asset management, and sustainable practices are not merely desirable but essential for ensuring water security.

The path forward demands a collaborative spirit. Policymakers must provide sustained funding and clear regulatory guidance. Utilities must accept technological advancements and proactive asset management. The private sector must continue to innovate and invest in solutions that bridge the gap between critical needs and cutting-edge capabilities.

By working together, we can overcome the current vulnerabilities and build water systems that are resilient, efficient, and sustainable for generations to come. The future of water is not just about pipes and pumps; it’s about pioneering new ways to manage our most precious resource, ensuring its availability and quality for all.