Conservation Via Water Rates? Cape Cod Commission To Study Idea

CAPE COD, MA — New grant money has helped the Cape Cod Commission launch a comprehensive study to evaluate the use of tiered water rate structures as a tool to promote water conservation across the region.

The effort is supported by a $44,332 Drought Resiliency and Water Efficiency Grant awarded by the Massachusetts Executive Office of Energy and Environmental Affairs, officials said.

With 18 independent water and fire districts managing water supply and delivery across Cape Cod, approaches to conservation have varied. Most districts currently lack both incentives and resources to engage users on conservation or enforce usage restrictions, officials said.

But a tiered system has worked for some on the Cape.

The Cotuit Water District implemented tiered water rates in 2019, significantly raising rates for high-volume users. The approach yielded immediate results, leading to further rate adjustments in 2024.

Since 2020, the Water District estimates it has reduced summer water pumping volumes by as much as 40 percent, officials said.

Building on this model, commission staff, with support from the Cotuit Water District and Brewster Water Department, will survey water districts across the Cape to identify current rate structures, including any use of tiered pricing or other conservation-oriented incentives.

The study will also examine rate structures from other parts of Massachusetts and beyond to identify best practices and lessons learned.

In addition, commission staff will collect and analyze water usage data from local districts, examining trends in relation to weather patterns, drought conditions, groundwater levels and rate structures.

The findings will be compiled into a report that will include analysis, best practices, implementation considerations and policy recommendations, officials said.

“This study will evaluate how tiered water rates can be used effectively to reduce consumption and enhance water conservation,” said Kristy Senatori, Executive Director of the Cape Cod Commission. “As climate change increases pressure on our water resources, innovative, data-driven strategies like this will be essential to building resilience.”

Officials hope the study will provide actionable insights and data to help water districts across Cape Cod consider, adopt or refine tiered rate structures to better manage water resources and reduce consumption during critical periods.

This award is part of nearly $500,000 in grants from the inaugural Drought Resiliency and Water Efficiency Grant Program. The funding, provided by the Executive Office of Energy and Environmental Affairs (EEA), will help communities "reduce indoor and outdoor water use, control water losses within water supply systems, and improve drought management planning," officials said.