When Water Doesn’t Go Down the Drain: Are Our Wastewater Rates Fair?

Council Watch | Sustainable Life | October 12, 2026

Not all the water we purchase ends up in the sewer. Should our utility rates recognize that difference?

Last week’s Council Watch discussion about Diamond Valley’s proposed water and wastewater rates generated some thoughtful comments from residents.

We talked about water loss, aging infrastructure, the effects of the 2013 flood, and the importance of long-term infrastructure planning.

Then another question emerged, one I’ve heard several times over the years:

What happens when a business purchases municipal water but doesn’t return all that water to the wastewater system?

It’s a reasonable question, particularly as Diamond Valley moves toward full cost recovery for water and wastewater services.

Water In Doesn’t Always Equal Water Out

For many households, municipal water consumption provides a reasonable approximation of wastewater discharge.

But consider a brewery, distillery, car wash or other business that uses water in its operations.

Some water may become part of a finished product. Some may evaporate. Some may be used outdoors, while other portions enter the wastewater system.

The proportions depend on the operation.

In Diamond Valley, wastewater consumption charges are generally calculated using the volume of metered municipal water supplied to the property.

That is a practical billing method, but it raises a question when incoming water and actual wastewater discharge differ significantly.

What Are Other Municipalities Doing?

I spent some time reviewing wastewater billing programs in Winnipeg and Toronto.

Both municipalities recognize that, under certain circumstances, water purchased from the municipal system does not all return to the sewer.

Winnipeg has an Adjustment of Sewer Charges program through which qualifying customers can demonstrate that significant quantities of water are not discharged into the wastewater system.

Toronto operates a Sewer Surcharge Rebate Program for eligible businesses, using documentation and measurement to establish qualifying water volumes.

These programs have eligibility requirements, verification procedures and administrative costs. They aren’t automatic discounts simply because a business conserves water.

But they demonstrate something important:

Municipal wastewater billing can be designed to recognize verified differences between water supplied and wastewater discharged.

Diamond Valley is much smaller than either city. Any similar arrangement here would need to be practical, affordable and appropriate for our businesses and municipal administration.

Could Better Measurement Help?

There are several ways to investigate actual wastewater discharge.

A dedicated wastewater meter can measure discharge where suitable piping and operating conditions permit.

Alternatively, sub-meters may measure particular water uses that do not enter the sewer.

For some businesses, a documented water balance, supported by production records and appropriate measurements, may be more practical than installing specialized wastewater metering equipment.

Each approach has advantages, limitations and costs.

The important question is whether a reliable, verifiable method could be established without creating an unreasonable burden for either the business or the Town.

The Rainwater Connection

This discussion also connects directly to rainwater harvesting.

When we collect rainwater for gardens, trees or greenhouse irrigation, we’re reducing demand for treated municipal water.

That water generally doesn’t enter the municipal wastewater system either.

But rainwater used indoors presents a different situation. If it eventually enters the municipal sewer, the wastewater infrastructure is still being used, even though the water didn’t come through the municipal supply meter.

That illustrates why we need to consider both where water comes from and where it goes.

Water conservation, water reuse and wastewater management are connected, but they aren’t identical.

What About Full Cost Recovery?

Here’s where the discussion becomes more complicated.

Even if a customer discharges less wastewater, the Town still needs to maintain pipes, pumping equipment, treatment facilities and infrastructure reserves.

Those costs don’t disappear when water consumption declines.

There are also differences in the wastewater itself. Some commercial operations may discharge smaller volumes but create higher treatment demands because of the strength or composition of their wastewater.

A fair system therefore needs to consider more than volume alone.

The goal should be to recover the real costs of providing the service while recognizing measurable differences in how that service is used.

That’s a balance worth exploring.

The LEED Connection — Looking at the Whole System

One principle I keep returning to in the LEED green building framework is integrative thinking.

Water efficiency, alternative water sources, metering, wastewater management and long-term building performance shouldn’t be considered independently.

A decision made in one area can affect costs and resource use elsewhere.

LEED doesn’t determine municipal wastewater rates. But its emphasis on measurement, resource efficiency and integrated planning offers a useful way to examine the problem.

Rather than asking only how much water a building purchases, we can also ask how that water is used, whether it can be reused, and what eventually enters the wastewater system.

That’s a more complete picture of water management.

A Question Worth Exploring in Diamond Valley

As Council considers future water and wastewater rates, perhaps there is an opportunity to examine how the current billing structure accommodates businesses with measurable differences between incoming water and wastewater discharge.

Could qualifying businesses demonstrate those differences through approved metering or documented water balances?

Would the potential benefits justify the administrative and equipment costs?

And how could such an arrangement preserve the funding needed to maintain and eventually replace our wastewater infrastructure?

These are questions for investigation, not demands for immediate changes.

I also intend to learn more about the actual water-use processes at a local brewery. Understanding how a business operates firsthand is an important part of evaluating whether a proposed solution would be practical.

Thinking Beyond the Water Bill

Our discussion began with proposed utility increases, but it has grown into something larger.

Residents are asking about infrastructure planning, water losses, financial accountability and how fairly costs are distributed.

That’s exactly the kind of conversation worth having.

Links

• Toronto Sewer Surcharge Rebate Program https://www.toronto.ca/services-payments/water-environment/how-to-use-less-water/water-efficiency-for-business/sewer-surcharge-rebate-program/
• Winnipeg Adjustment of Sewer Charges https://legacy.winnipeg.ca/waterandwaste/billing/asc.stm

Good water management isn’t just about how much water we use. It’s about how we use it, where it goes, what it costs to manage, and how we share those costs fairly.

Everything is connected.

Sustainability grows when we share it.

— Sustainable Life | Council Watch