A Peoria address doesn't tell you who supplies the water. Peoria Economic Development lists four water providers serving the area: the City of Peoria, EPCOR, Rose Valley Water Company and Sunrise Water Company. Each one gets its water from different places and raises prices through a different process. When the Colorado River delivers less, each passes that shortfall to customers in its own way. A buyer comparing two homes a few streets apart can end up with two different water risks and not find out until the first bill arrives.
This fall, all four providers are in the news. The clearest example is the smallest one.
A surcharge request landed on north Peoria bills in October
On October 22, 2026, Sunrise Water Company filed an emergency rate request with the Arizona Corporation Commission. The filing cites "declining well production and substantially increased purchased water costs." According to the company's customer notice, Sunrise wants to recover $592,630.54 in purchased-water costs it already owes for 2026. It would do that with a monthly surcharge sized to the meter. A second step would add an estimated $170,195.79 for more water it expects to buy this year.
| Meter size | Step 1 monthly surcharge | Step 2 estimated monthly total |
|---|---|---|
| 3/4" | $7.23 | $9.49 |
| 1" | $12.05 | $15.82 |
| 1 1/2" | $24.09 | $31.62 |
| 2" | $38.55 | $50.60 |
On a typical 3/4-inch residential meter, step one works out to about $87 a year. The step-two estimate brings that to about $114. The notice says step two is based on actual 2026 water purchases, so the final figure could come in higher or lower. The Commission isn't bound by the request. It can approve the amount, change it in either direction or deny it. The Commission's docket, W-02069A-26-0432, set a hearing and public comment session for November 10. Customer comments opposing the request were filed in early November.
For a buyer, the key point is where the charge comes from. A new monthly line on this bill is decided in a state commission docket, and a city budget hearing has no say over it.
Why a company with its own wells ends up buying water
Sunrise is small. A 2020 City of Peoria council communication puts its service area roughly between 75th Avenue and Lake Pleasant Parkway, from Happy Valley Road south to Williams Road, with about 2,000 connections. Part of that area is in Peoria and part is in county islands. At that time, the document said, its supply "comes entirely from groundwater wells." The Central Arizona Groundwater Replenishment District recharges water on Sunrise's behalf to offset what it pumps.
The setup is the weak point. When a utility's own supply is its wells and a well underperforms, the backup is to buy water from someone else. Sunrise and the City of Peoria signed an emergency interconnection agreement in 2011. The council document says Sunrise used it several times, mostly in summer, and paid commercial rates for the water. In 2020, Sunrise asked for a second connection after a failed well project and mechanical problems at another well. The city approved it on condition that Sunrise hand over long-term storage credits equal to the water it receives.
The 2026 filing describes the same problem, and this time the cost of buying water is being passed directly to customers. A small customer base is the other half of the math. The city counted about 2,000 Sunrise connections in 2020, and when a base that size shares a cost of more than half a million dollars, each household's share is large enough to show up as its own line on the bill.
Service lines here don't follow subdivision names. A 2023 Peoria Independent report on The Trailhead, a development at Happy Valley Road and 83rd Avenue, said part of the project sits in the city's water service area and part in Sunrise's.
The city's system spreads the same risk across more sources
Just outside Sunrise territory, the City of Peoria carries its water risk in a very different way. The city's water supply page shows these 2025 deliveries:
- CAP Colorado River water: 20,216 acre-feet, 58.9%
- SRP water: 10,145 acre-feet, 29.5%
- Well pumping, which the city notes includes recovered stored water as well as groundwater: 2,673 acre-feet, 7.8%
- Direct reclaimed water: 1,307 acre-feet, 3.8%
That makes the city heavily dependent on the Colorado River, and the river is shrinking. Arizona is in a Tier 1 shortage for 2026, which Central Arizona Project puts at a 30% cut to CAP's normal supply. On August 21, 2026, the Interior Department set new operating guidelines for 2027 and 2028. The Bureau of Reclamation release describes a 1.25-million-acre-foot annual reduction in Lower Basin deliveries for 2027, with Arizona's share at 760,000 acre-feet if the Lower Division states' sharing proposal is put in place. The city says the reduced allocations begin in January 2027.
Three things soften the impact on city customers. First, Peoria can order up to 34,121 acre-feet of CAP water a year. That total includes 27,121 acre-feet of municipal and industrial priority water and 7,000 acre-feet of Indian-priority water leased from the Gila River Indian Community. The city describes both priorities as the last to be reduced in a shortage. Second, the city reported about 243,000 acre-feet of underground storage credits at the end of 2024, roughly seven times its annual CAP allocation. Third, the Arizona Department of Water Resources lists the City of Peoria as a designated provider of an assured water supply, meaning enough water for anticipated needs over at least 100 years.
The city is also working to add supply. On September 16, 2026, Peoria announced a $104 million agreement with Vidler Water Company for 173,672 acre-feet of long-term storage credits. The deal also includes a 120-acre water campus west of Tonopah with two wells. After permitting, that water would move through the CAP canal to the Pyramid Peak Water Reclamation Facility. The city says the purchase would add the equivalent of 1.5 million gallons a day for the next 100 years, and its September announcement said it expected the deal to close in late October.
Sunrise's shortfall shows up as a proposed monthly surcharge on a small customer base. The city's shortfall is spread across a supply mix, a reserve of stored credits and a long-range capital plan, and it reaches customers through regular rate cycles.
Who sets the price on each bill
The city also raises rates, so the real difference lies in who decides and on what schedule.
| Provider | Who approves rates | What is on the calendar |
|---|---|---|
| City of Peoria | Peoria City Council | Public hearing on proposed FY2028 and FY2029 water, wastewater and solid waste rates, December 15, 2026, 6 p.m. |
| Sunrise Water Company | Arizona Corporation Commission | Emergency surcharge docket W-02069A-26-0432, hearing set for November 10, 2026 |
| Rose Valley Water Company | Arizona Corporation Commission | Peoria franchise agreement approved by voters November 3, 2026 |
| EPCOR | Arizona Corporation Commission | Consolidation rate case for several nearby districts, hearing starting April 19, 2027 |
City of Peoria. The city's October 14 notice sets the December 15 hearing in Council Chambers at 8401 W. Monroe Street. The written report supporting the water and wastewater changes must be on file with the City Clerk at least 30 days before the hearing. In March, the city's proposed FY2027 budget forecast an average combined water, sewer and solid waste adjustment of 5.1% as of July 2026. The city describes its approach as small annual increases that keep pace with costs.
Rose Valley. Rose Valley says it serves about 2,400 households in the West Valley. Peoria voters approved Proposition 417, its franchise agreement with the city, 40,356 to 23,447, or 63.25%, in Maricopa County's unofficial count posted November 6. According to the city's Proposition 417 FAQ, the agreement lets Rose Valley use public rights-of-way to serve its customers in Peoria. In return, the city collects a franchise fee of 2% of gross revenue on Rose Valley utilities provided in that area. Rose Valley's posted tariff, effective January 1, 2023, sets a $17.54 monthly minimum for a 5/8-by-3/4-inch meter. Usage is billed at $1.20 per 1,000 gallons for the first 3,000 gallons, $1.80 per 1,000 up to 7,000 gallons, and $2.16 per 1,000 above that.
EPCOR. When Peoria annexed 458 acres of state land around Loop 303 and Happy Valley in November 2024, the city said the area would continue to get water and wastewater service from EPCOR. EPCOR's September 2026 notice proposes consolidated rates for its Sun City, Sun City West, Sonoran, Rio Verde, Paradise Valley and Gateway districts. The Commission hearing starts April 19, 2027.
What to confirm about a specific address
ADWR notes that assured-supply designations don't necessarily follow city limits or a private company's franchise area. That's why the check has to happen at the address level:
- Ask the seller for a recent water bill. The utility's name is printed on it.
- Call that utility with the street address and confirm the home is in its service area.
- If it's a private company, search its name on the Arizona Corporation Commission's eDocket for open rate or surcharge cases.
- If it's the City of Peoria, look at the December 15 hearing materials once the written report is on file with the City Clerk.
- Ask the utility where its water comes from. A system built on its own wells and a multi-source city system react differently to a dry year.
This is general information about how Peoria's water providers operate, not legal or financial advice, so check the details of any specific property with the utility and the right professional.
Quick answers
Does a Peoria mailing address mean City of Peoria water? No. The Peoria Economic Development list shows four providers serving the area, and some providers' service areas extend into unincorporated county islands.
Will the Colorado River cuts that begin in January 2027 change Sunrise customers' water? The city's 2020 council document described Sunrise's supply as entirely groundwater wells. Its 2026 request cites declining well production and higher costs for purchased water.
Can a resident weigh in on the city's proposed rates? Yes. The December 15 hearing at 6 p.m. in Council Chambers is open to anyone who wants to comment.
If you're comparing Peoria homes and want to know who supplies the water before you write an offer, Robert Tolnai and our home group can help you get that answer early, while it can still shape your decision. Call Robert Today for a Free Home Market Consultation.
