The Water and Wastewater Market in the United States is a massive and steadily expanding sector. In 2024, the U.S. market is valued at around $64 billion, with projections climbing to approximately $68.5 billion in 2025. Broader industry assessments push these figures even higher, estimating as much as $113.8 billion in 2023, with growth to $121.4 billion in 2024. These differences often depend on how comprehensively the sector is defined—including treatment, infrastructure, operations, and regulatory compliance.
Within this large and complex Water and Wastewater Market, the municipal and public sector commands a significant share—typically between 20% and 30%. This includes operations and infrastructure managed by local and state governments, as well as public education institutions. Regulatory mandates, funding programs like the Clean Water State Revolving Fund (CWSRF), and environmental compliance continue to drive spending upward across all levels of government.
California’s Water Infrastructure in Focus
In California, the stakes are even higher. The California State Water Project, one of the world’s largest public water delivery systems, delivers about 2.5 million acre-feet of water annually and underpins a $2.25 trillion economy. The state spends roughly $37 billion each year on its water systems through a mix of taxes, public bonds, and agency budgets—making it a substantial component of the national Water and Wastewater Market.
Nearly all municipal wastewater infrastructure in California is operated by local public agencies. The California State Water Resources Control Board oversees the system and requires annual reporting from about 750 wastewater and recycled-water permit holders. These reports track discharges, treatment processes, and operational capacity, forming the backbone of the state’s environmental oversight and planning.
Estimating California’s Public Sector Share
Breaking down the numbers gives us a clearer view of where opportunity lies. Public K–12 schools and colleges are estimated to represent about 10–15% of the municipal market, while general state and local government infrastructure takes up another 15–20%. Based on a national municipal market size of $13 to $20 billion (roughly 20–30% of total), California’s share is estimated at between $3.3 and $4.5 billion annually for these two segments.
This portion of California’s Water and Wastewater Market includes everything from sewer line rehabilitation and decentralized treatment systems to stormwater retention and PFAS mitigation. Educational institutions often operate older infrastructure and may require retrofits for both compliance and efficiency. State and local agencies, on the other hand, are seeing increased pressure to meet stricter environmental and health regulations—driving consistent investment in both capital improvements and system upgrades.
An example of this kind of large-scale investment is Sacramento’s EchoWater Project, a $1.6 billion wastewater facility upgrade aimed at improving discharge quality into the Sacramento River. Meanwhile, new federal PFAS standards are projected to generate as much as $3 billion annually in added public sector compliance spending nationwide.
Funding Sources and Data Gaps
One challenge when analyzing this market is the fragmented nature of funding. While some water treatment projects are financed at the state level or through federal matching funds, many school and district-level upgrades are paid for through local bond measures and taxes. As such, sector-specific spending on water infrastructure isn’t always broken out clearly in budget documents. Still, directional estimates based on national averages and state totals give a workable picture of public-sector spending within California’s Water and Wastewater Market.
Final Thoughts
The U.S. Water and Wastewater Market is valued between $64 billion and $121 billion depending on the scope. The public sector makes up an estimated $13 to $36 billion of that total. In California, water-related infrastructure spending is approximately $37 billion annually. Within that, public institutions such as schools, colleges, and government buildings account for around $3 to $4.5 billion per year—covering treatment, delivery, infrastructure, and compliance-related operations.
As environmental regulations tighten and public infrastructure ages, the need for sustainable, resilient water systems will only increase—making this a dynamic and essential segment of the broader utility market.
Partner with Us to Advance Public Sector Water Solutions
Green Technology has proudly supported California’s public sector for two decades. If your organization is working to improve water infrastructure, treatment, or sustainability, we’d love to connect and explore how we can work together.
Contact us today to be part of the solution.