Water Prices Set to Rise Again in Israel Starting January 2027
Water prices in Israel are slated for another increase of approximately 2.3% starting in January 2027, following a similar rise in early 2026. The proposed hike would raise the lower domestic tariff to about 8.70 shekels/m³ and the higher tariff to around 15.97 shekels/m³. These adjustments are attributed to rising operational and investment costs in the water sector, including expenses from desalination facilities. The Water Authority is currently holding a public hearing, with final tariffs expected by the end of December 2026.
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- Israeli water prices are proposed to increase by approximately 2.3% starting January 2027.
- The proposed hike follows a similar 2.35% increase that took effect in January 2026.
- The lower domestic water tariff may rise to about 8.70 shekels/m³ from the current 8.51 shekels/m³.
- Increased operational costs at desalination plants and infrastructure maintenance are cited as reasons for the rise.
- A public hearing on the proposed tariffs is underway, with final decisions expected by late December 2026.
Consumers in Israel should prepare for another increase in water prices, with the Water Authority proposing a hike of approximately 2.3% effective January 2027. This follows a similar increase that took effect at the beginning of 2026. The proposed tariff for low domestic consumption is expected to rise from about 8.51 shekels per cubic meter (m³) to approximately 8.70 shekels, while the higher tariff could increase from 15.62 shekels to 15.97 shekels per m³, including VAT.
These proposed prices are part of a moderate plan compared to other options considered, which could have led to a steeper 6% increase. The final tariffs for 2027 have not yet been determined. In January 2026, water and sewage tariffs for domestic consumers already rose by an average of about 2.35% compared to January 2025. The lower tariff increased from 8.314 shekels/m³ to 8.508 shekels/m³, and the higher tariff from 15.260 shekels/m³ to 15.623 shekels/m³.
The rationale behind the proposed price adjustment is to align tariffs with the operational and investment costs of the water economy, including desalination, pumping, transmission, supply, and infrastructure maintenance. Discussions revealed that increased operational costs at desalination facilities, partly due to a bloom of micro-algae that impacted operations and led to additional electricity expenses of about 73 million shekels and filter purchases of 42 million shekels, contributed to the need for a price update. However, some of these additional costs will not be factored into the 2027 tariff calculation.
Additionally, the delay in implementing recommendations for efficiency improvements within water corporations, such as reducing water loss from leaks and pipe failures, was also a point of discussion. The Water Authority has initiated a public hearing process for the proposed tariffs, with the deadline for public comments set for November 29, 2026. The Water Authority Council is expected to finalize the tariffs by the end of December 2026, after reviewing public feedback.
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