2O21 - State of the Water Industry
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State
of the
Water
Industry
deal crop marks
2O21
EXECUTIVE SUMMARY
1 
Optimism prevails in resilient water sector
Despite pandemic, positive trend continues
During a year underscored by the global COVID-19 AWARENESS AND PREPARATION
pandemic, water professionals − hailed as essential AWWA’s annual survey, launched in 2004, is a
service providers − persevered through unprecedented self-assessment of the sector’s ongoing ability
challenges to deliver safe, reliable water and sanitation to safeguard public health, support and strengthen
services to the public. communities, and protect the environment. The
This resilience within the water sector is underscored SOTWI report is intended to help water utilities,
by a record level of optimism recorded in the 2021 service providers, regulators and researchers
State of the Water Industry (SOTWI) report. The report identify and prepare for challenges, opportunities
is based on an annual survey of North American water and trends impacting the water community.
professionals conducted by the American Water The 2021 report, highlighted in this Executive
Works Association (AWWA) between September Summary, compiles data from 3,021 survey
and November 2020. participants on water sector issues including
Despite the pandemic, as well as extreme weather infrastructure, emergency preparedness, regulatory
events and other 2020 challenges, survey participants compliance and water resources management.
Optimism on average rated the current overall health of the water This year’s report also investigates the impacts
industry at 5.24 on a scale of 1 (not sound) to 7 (very of the unprecedented COVID-19 pandemic on
“
sound), the most optimistic in the 17 years of the the water sector.
SOTWI survey. Using the same scale, they also rated
the soundness of the water industry in five years at 5.01.
“
As shown in the graph below:
“The rise in optimism from water leaders doesn’t The 5.24 rating for the sector’s current overall health
surprise me at all. The pandemic and the is the fourth consecutive increase since the low
of 4.34 in 2017.
response to natural disasters in many regions
also inspired us to shake off the “we have The 5.01 rating for the sector’s soundness in five “I attributed last year’s rise in optimism to
years also is the highest in the history of the survey an ‘accumulation effect.’ In other words, as
always done it that way” mentality. In some
and the fourth consecutive increase since the low of
ways we’ve leapt 10 years ahead of where we we accumulate knowledge and experience
4.34 in 2017.
might have been. Working from home for those to solve modern-day water challenges, we
who can? Check. New ways of working, and new
State of the Water Industry:
All respondents 2004–2021 (n = 2,916)
become more optimistic about the current
5.40
processes? Check. And as water professionals 5.24
and future health of the water sector. This
5.20
who dealt with wildfires, hurricanes, and winter 5.00
5.00
4.90
4.86 4.92
5.01
year’s continuing upward trend–especially
4.79 4.85
4.80
storms can attest, there is nothing like a real-life 4.60
4.87 4.81
4.73
4.70
4.64 4.61 4.65 4.63
4.51
4.56
4.69
4.74 during a pandemic–reinforces this theory
4.64 4.63 4.46 4.47 4.47
4.58
and demonstrates the growing confidence
4.57
4.51 4.54 4.34
disaster that needs to be addressed with funding 4.40
Current 4.36
4.47
4.35 4.39
4.43
4.20
and infrastructure so it never happens again. 4.00
In 5 Years
in our ability to work together on solutions.
As a result, we know we can support a
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Check. We’ve always been resilient, but what the ©AWWA 2021 State of the Water Industry
last year reinforced is that we are adaptable too, better world through better water.”
and that’s a pretty unbeatable combination.” David LaFrance, CEO, AWWA
Melissa Elliott, President, AWWA
Full report available at awwa.org/SOTWI
2 3 
Infrastructure, finance remain top issues
Emergency preparedness jumps in importance
For the ninth straight year, survey participants ranked the American Jobs Plan − While the Biden
water sector’s two most pressing challenges as: Administration’s infrastructure plan was not introduced
Renewal and replacement of aging water and at the time of the survey, early proposals include
wastewater infrastructure, No. 1 $56 billion in grants and loans to upgrade and
modernize water systems, $45 billion for lead
Financing for capital improvements, No. 2
service line replacement and $10 billion to monitor
Given the events of the past year, it’s not surprising that and remediate PFAS. Congress introduced several bills
“emergency preparedness” made the biggest leap in this in early 2021 aimed at increasing federal support for
year’s ranking, up from No. 8 last year to No. 4 in the upgrading the nation’s water infrastructure.
2021 report.
Infrastructure Altogether, survey participants from small, medium and
large utilities similarly ranked the top six challenges. 2021
Ranking
Issues Facing the Water Industry in 2021
Water Sector Challenge
Beyond these issues, very large utility participants placed
Renewal and replacement of aging water and wastewater
a high priority on compliance with current and future 1 infrastructure
regulations. Smaller utilities were more concerned with 2 Financing for capital improvements
public understanding of the value of water systems, 3 Long-term water supply availability
services and resources.
“
4 Emergency preparedness
At right is a list of the top 20 issues impacting the water Public understanding of the value of water systems and
5 services
sector compiled from survey data.
6 Watershed/source water protection
COMPLEX ISSUES, VARIED SOLUTIONS
7 Public understanding of the value of water resources
The top two recurring challenges reflect the complexity
“The aging infrastructure of Great Lakes 8 Aging workforce/anticipated retirements
of how water utilities address and pay for the replace-
Water Authority continues to deteriorate, ment of aging infrastructure. The water community, 9 Compliance with current regulations
raising maintenance and repair costs. To along with public and private partners, continues to 10 Groundwater management and overuse
build resiliency, we are simultaneously develop and refine innovative solutions. These include: 11 Compliance with future regulations
12 Cybersecurity issues
working to meet stringent standards for WIFIA − The Water Infrastructure Finance and
Cost recovery (pricing water to accurately reflect the
Innovation Act (WIFIA) became law in 2014 due 13
safe and clean drinking water while cost of service)
in part to the efforts of AWWA and its members. 14 Talent attraction and retention
investing in the maintenance and renewal The U.S. Environmental Protection Agency (EPA), 15 Asset management
of critical infrastructure that is vital to which runs the program, reported in March 2021 16 Water conservation/efficiency
our community. By prioritizing water that WIFIA had closed on 46 loans, providing
17 Drought or periodic water shortages
sector financing now, we can better $9 billion in financing. This helped finance $19.4 billion
Improving customer, constituent, and community
in water infrastructure projects in total and created 18 relationships
provide stability while continuing to
LEARN MORE: 47,000 jobs. 19 Data management
protect our water quality.”
M29 Water Utility Capital Financing AWIA − America’s Water Infrastructure Act of 2018 20 Water loss control
Source Water Protection Toolkit Cheryl Porter, Chief Operating Officer, reauthorized WIFIA and the Drinking Water and Clean ©AWWA 2021 State of the Water Industry
Great Lakes Water Authority Water State Revolving Funds through Sept. 30, 2021,
AWWA Water Infrastructure Conference
the end of the federal fiscal year. During the spring
AWWA/WEF Utility Management Conference
of 2021, Congress began work on bills to reauthorize
WIFIA and the state revolving loan fund programs with
significant increases in funding.
4 5 
Pandemic triggers unprecedented challenges
Workforce, operations, revenue, supplies impacted
Pandemic As COVID-19 spread across borders in early 2020,
people were advised to stay home, social distance
SHARING CRITICAL INFORMATION
As the pandemic evolved, the water sector provided
and wash hands frequently. The water community important and ongoing information to the public and
overcame unprecedented challenges to sustain other key stakeholders about the safety and reliability
business operations, provide safe and reliable water and of water services. Utilities turned to a variety of
wastewater services and protect their essential workers. communication platforms to engage their communities.
To help gauge how member organizations were adapting
Effectiveness of various platforms for utility communication
to the pandemic, AWWA conducted four surveys in 2020.
Website 60.6%
The Association also partnered with the Association of
Monthly billing 60.3%
Metropolitan Water Agencies and Raftelis to provide a Mass media
44.0%
report, “The Financial Impact of the COVID-19 Crisis on (television, radio, ...
U.S. Drinking Water Utilities.” Press conferences 37.4%
Print and/or electronic... 47.9%
The table below shows how utility participants ranked a Social media
engagement 54.9%
set of business challenges caused by the pandemic in % Indicating platform is Effective to Very effective
the second quarter (Q2) of 2020 and then again in Q3. ©AWWA 2021 State of the Water Industry
In general, the critical nature of the challenges lessened
“
over time, except for operator licensing, which saw a The figure above shows how survey participants rated
slight increase. the effectiveness of their utility’s communication on the
safety of water and reliability of water services during the
pandemic. More than 60% found their utility’s website
and monthly billing effective to very effective, followed by
“Thanks to round-the-clock response social media engagement.
planning and execution, Des Moines
Water Works operated at full capacity
Ranking of challenges to sustaining business operations for Q2 and Q3 2020
during all phases of the pandemic, Q2 Q3
Rank Challenge Rank Challenge
including being one of the first utilities
1 Disruption in supply chain for personal protective equipment 1 Disruption in supply chain for personal protective equipment
in the nation to sequester personnel in 2 Revenue generation/cash flow 2 Revenue generation/cash flow
campers on-site to ensure their health 3 Lack of options for operators to get CEUs to keep license current 3 Lack of options for operators to get CEUs to keep license current
and the continued flow of safe drinking 4 Continuity of operations due to absenteeism 4 Continuity of operations due to absenteeism
LEARN MORE: 5 Impacts on field operations (meter reading, repairs, etc.) and/or 5 Need to separate or distance workforce from support/contract
water to the public. We updated our plan treatment operations service (e.g., biosolids, laboratory, delivery of essential materials)
First AWWA COVID-19 survey
daily in response to new science and 6 Need to separate or distance workforce from support/contract
service (e.g., biosolids, laboratory, delivery of essential materials)
6 Impacts on field operations (meter reading, repairs, etc.) and/or
treatment operations
Second AWWA COVID-19 survey
Third AWWA COVID-19 survey unforeseen challenges.” 7 Being able to hold required public board meetings 7 Being able to hold required public board meetings
8 Disruption in supply chain for other materials besides treatment 8 Disruption in supply chain for other materials besides treatment
Fourth AWWA COVID-19 survey Ted Corrigan, Des Moines Water Works chemicals chemicals
he Financial Impact of the COVID-19 Crisis
T 9 Disruption in supply chain for treatment chemicals 9 Disruption in supply chain for treatment chemicals
on U.S. Drinking Water Utilities
CEO & General Manager
10 Delay of mandated equipment repairs 10 Delay of mandated equipment repairs
esponding to Water Stagnation in Buildings
R 11 Reduced number of certified operators to meet required staffing 11 Reduced number of certified operators to meet required staffing
with Reduced or No Water Use: A Framework rules rules
for Building Managers
12 Limitations of laboratory testing capacity 12 Challenges due to flushability
rending in an Instant: A Risk Communication
T 13 Challenges due to flushability 13 Limitations of laboratory testing capacity
Guide for Water Utilities
CEU—continuing education unit
6 ©AWWA 2021 State of the Water Industry 7 
Preparedness and resiliency planning on track
Cybersecurity an increasing concern
Preparedness Challenges faced by the water community in 2020 went
beyond the pandemic to include extreme events such Deadlines for complying with AWIA risk and resilience provisions
Estimated Number Risk and
as historic wildfires, drought and tropical cyclones. of Impacted Resilience Emergency
The National Centers for Environmental Information Population Community Assessment, Response
Served* Water Systems Before Plan
recorded 22 weather and climate events during the year, ≥100,000 435 Mar. 31, 2020 Sept. 30, 2020
with losses exceeding $1 trillion, a single-year record.
50,000–99,000 594 Dec. 31, 2020 June 30, 2021
Because of the essential nature of its business, the water
3,300–49,000 8,295 June 30, 2021 Dec. 30, 2021
sector is well-prepared and practiced at planning for
Source: Via S., March 2019. Journal AWWA, https://doi.org/10.1002/awwa.1247
routine and extreme events and had been focused on
AWIA—America’s Water Infrastructure Act of 2018
emergency preparedness and resilience prior to 2020. *Wholesale systems use total population
This was prompted in part by requirements of the
©AWWA 2021 State of the Water Industry
America’s Water Infrastructure Act (AWIA) of 2018.
These provisions include:
CYBERATTACKS A SERIOUS THREAT
Community water systems serving more than
The survey also highlighted the growing criticality
3,300 people must prepare a risk and resilience
of cybersecurity within the water sector. This issue
assessment considering threats from malevolent
increased in the ranking of top water sector challenges
“
acts and natural hazards, and
to No. 12 from No. 16 in 2020. Even though the survey
These utilities must also develop an emergency plan was completed before the highly publicized February
addressing these threats to lessen the impact on the 2021 cyberattack on a Florida water system, prior
health, safety and supply of drinking water. instances of ransomware attacks and data breaches
The table above shows compliance deadlines for have demonstrated the need for water utilities to be
“We take emergency preparation and
these provisions. vigilant in preventing similar attacks.
response seriously at San Antonio Water
Survey participants indicated they are on schedule Asked whether their utility was planning, revising or
System. From disaster planning exercises assessing information technology needs to defend
for meeting the AWIA requirements:
to installing electrical heat wraps on against a cyber intrusion:
93% of utility respondents said they had fully
infrastructure to actually stationing staff at developed or were developing an emergency 20% of survey participants said their utility had fully
critical pump stations in advance of severe response plan implemented some form of plan to address
LEARN MORE:
weather, we aim to be prepared for every 80% said they had fully implemented or were in cyber intrusion
mergency Preparedness and Response for Water
E
Utilities DVD contingency. We also learn from every the process of implementing a risk and resilience 20% said their utility was assessing its cyber
assessment intrusion needs
ecurity and Emergency Planning for Water and
S storm, including the most recent freeze
Wastewater Utilities
which presented new challenges from a Nearly 53% of utility respondents said their utility
mergency Power Source Planning for Water and
E
Wastewater had mutual aid or collaboration with nearby utility
prolonged, system-wide loss of power
19 Emergency Planning Water and Wastewater
M
systems fully implemented before the pandemic
Utilities standpoint.”
M60 Drought Preparedness and Response
Robert Puente, President & CEO,
Cybersecurity Risk & Responsibility Guide
San Antonio Water System
Cybersecurity Guidance
Utility Risk & Resilience Certificate Program
8 9 
Regulatory compliance an ongoing concern
PFAS, lead and copper top water challenges
Regulatory The water sector’s ability to comply with regulations
and health advisories requires extensive attention
Of the utility survey participants:
79% said their utility has fully implemented
and the current focus is on addressing per- and or is in the process of implementing a lead service
polyfluoroalkyl substances (PFAS) and lead in line replacement program.
drinking water.
Survey participants reflected the weight of this Regulatory concerns ranked by all survey respondents
responsibility in two of the top water issues identified All
in the 2021 report: Weighted % Extremely Respondents
Contaminant Average Concerned (n = )
Compliance with current regulations, No. 9
PFOA/PFOS 3.14 17.6 2,136
(No. 5 among very large utility respondents)
Lead and copper 3.23 14.0 2,336
Compliance with future regulations, No. 11
Nonpoint source
(No. 6 among very large utility respondents) 3.21 12.5 2,227
pollution
All survey participants were asked about their levels of Point source pollution 3.16 11.2 2,268
concern regarding the water sector’s ability to comply Pathogens 3.09 13.4 2,290
with current regulations and health advisories. The table
Cyanotoxins 3.09 10.0 2,105
to the right summarizes their responses.
“
Disinfection byproducts 3.09 9.1 2,267
PFOA/PFOS was determined to be the top concern
for the second consecutive year. Lead and copper Nutrients 3.08 10.0 2,201
was second highest, moving up from No. 7 in last Combined sewer 3.02 10.6 2,199
overflows
year’s report.
“I served on the AWWA Board of Directors Perchlorate 2.89 6.6 2,064
The EPA released its long-awaited revision of the Lead
when the National Drinking Water and Copper Rule in January 2021, as former U.S. Pres-
Arsenic 2.82 6.6 2,194
Advisory Council gave the EPA the ident Trump’s administration was completing its work Radionuclides 2.76 7.4 2,082
and newly elected President Biden was entering office. PFOS - perfluorooctane sulfonate, PFOA—perfluorooctanoic acid
recommendation to include lead service
In March 2021, under the Biden Administration, EPA
line removal as part of the Lead and ©AWWA 2021 State of the Water Industry
published two Federal Register notices related to
Copper Rule (LCR) update. As a board, revisions to the Lead and Copper Rule.
we endorsed the recommendation. Here One is a final rule extending the effective date of the
in Green Bay, we put together a plan of Lead and Copper Rule by three months to June 17.
action to remove every lead service line — The second is a proposed rule on extending the effective
public and private — over the course date an additional six months, to Dec. 16, and to extend
the current compliance date by nine months to
LEARN MORE: of five years. This was accomplished
Sept. 16, 2024.
Source Water Evaluation Guide for PFAS
by collaborating with our city, state, and
Summary of PFAS Toxicological Research
federal governments.”
Lead Communications Toolkit
NSI/AWWA C810, Replacement and Flushing of
A Nancy Quirk, General Manager,
Lead Services Lines
Green Bay Water Utility
10 11 
Managing and protecting water resources
Utilities making inroads in supply and quality
Managing Survey participants rated several issues related to water
resources management as important challenges in the
PROTECTING DRINKING WATER QUALITY
One of the first critical barriers against drinking water
water sector. These included: contamination is protecting the source from potential
Long-term water supply availability, No. 3 risks and impacts. A strong source water protection
Watershed/source water protection, No. 6 program can be one of the most cost-effective methods
for maintaining, safeguarding and improving the quality
Groundwater management and overuse, No. 10
and quantity of source water and drinking water.
Of the utility participants in the survey:
Utility ability to meet long-term water supply needs
79% said their utility had completed, or was in the
Fully prepared 21.1% process of implementing, a source water protection
program
Very prepared 43.4%
Among very large utility respondents, this increased
Moderately 26.5%
prepared to 86%
Slightly prepared 6.3% The issue of groundwater management and overuse
Not at all
1.7% increased in importance in the 2019 and 2020 SOTWI
prepared
“
reports, in part in response to increasing drought and
0.0% 10.0% 20.0% 30.0%60.6%40.0% 50.0%
wildfires in California and other Western states. The
©AWWA 2021 State of the Water Industry
concern remained among the top 10 issues in the
2021 report.
“To serve Southern California's growing Of the utility survey participants:
LONG-TERM WATER SUPPLY
population and economy, Metropolitan's 77% said their utility had completed, or was in
When asked how prepared their utility will be to meet its
integrated resource plan is focused on the process of implementing, a groundwater
long-term water supply needs, the responses of utility
management plan
maintaining and expanding a diverse participants indicated:
water supply mix. We invest in local resource 92% think their utility is moderately, very or fully
programs such as water recycling, ground- prepared to meet long-term water supply needs
water recovery and storage, desalination This result is promising because just 8% indicated
their organization would be challenged to meet
and conservation, to offset water imported
demands, down from 12% in the 2020 and 2019 SOTWI
from Northern California and the Colorado reports. The breakdown of responses is shown in the
River Aqueduct. We proactively protect figure above.
and manage source waters and optimize
LEARN MORE:
treatment operations to deliver water that
480-20 Water Conservation and Efficiency
G meets or surpasses drinking water
Program Operation and Management
regulations and consumer expectations.”
M52 Water Conservation Programs
M71 Climate Action Plans
Heather Collins, Water Treatment Manager,
M60 Drought Preparedness and Response
Metropolitan Water District of Southern
California
12 13 
Water’s most important asset: its workforce
Workforce Addressing recruitment, training, retention, retirements
Workforce strategies are critical for the ongoing To address critical staffing shortages in water and
success of the water sector. These include recruiting, wastewater utilities, AWWA and other public and
training and retaining skilled employees, as well as private water-related organizations are collaborating
succession planning. on a national initiative spearheaded by EPA. The Water
According to a report from the Brookings Institution, Sector Workforce Initiative will recruit, train and
about a third of U.S. drinking water and wastewater retain more skilled workers for water sector careers,
operators will become eligible for retirement over the particularly with water and wastewater utilities.
next decade. As the world’s largest organization of water supply
Challenges related to the water sector’s current and professionals, AWWA has long been involved in
future workforce ranked among the top 20 in the 2021 educating the public about water sector careers.
SOTWI report. These included: This includes:
Aging workforce/anticipated retirements, No. 8 Providing scholarships for training and education
Talent attraction and retention, No. 14 Recruiting military veterans
In addition, survey participants were asked to list Transitioning service members into the water sector
other issues they felt ranked at least “very important.” Offering professional development opportunities,
“
Their responses included these workforce concerns: including continuing education credits,
Retention of institutional knowledge of long-term certification programs, conference programming
retiring staff and other resources
Retaining operators and training and certifying young
“East Bay Municipal Utility District recognizes future operators
our employees who make it possible to build, Mentorship and building a pipeline of young talent
maintain and operate the water and wastewater Training the workforce in new technology, especially
infrastructure that supports our community. programming and data analytics
We are committed to attracting, developing and Pay scale relevant to the criticality of the industry
retaining a diverse, high-performing workforce Nationwide licensing to ease hiring from other states
dedicated to public service, innovation and a Compensation to reflect the value of personnel and
culture of inclusion and belonging. We're proud attract new employees with knowledge to perform
the work
of our internships and training programs for
students, young adults, individuals with
disabilities, and our employees, to promote
LEARN MORE: and develop careers in water and wastewater
Workforwater.org
services.”
Veterans Workforce Initiative
Clifford Chan, General Manager,
he Water Workforce: Strategies for Recruiting
T
and Retaining High-Performance Employees East Bay Municipal Utility District
M5 Water Utility Management
14 15 
You Work Hard As A Water Professional We Want To Make Your Job Easier Our goal is to provide members with the essential resources and water knowledge they need to optimize day-to-day operations and maximize growth opportunities in the profession. AWWA Standards and Manuals, industry reports, and a wide range of education and training options provide the necessary guidance and tools to enhance your operational performance and support your career advancement in the water industry. Join AWWA today and get access to the people and information you need to advance! awwa.org DENVER WASHINGTON, DC 43 SECTIONS
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