Billions flow into water treatment plant modernization projects

July 22, 2026

Water treatment facilities have become one of the fastest-growing segments of the public infrastructure marketplace as communities across America confront decades of deferred maintenance, increasingly stringent water-quality standards, population growth, and emerging contaminants. The Environmental Protection Agency (EPA) estimates that the nation will require hundreds of billions of dollars in drinking water infrastructure investments over the coming decade, and federal support is expected to continue fueling that momentum. 

The Infrastructure Investment and Jobs Act provided more than $50 billion for drinking water, wastewater, and stormwater infrastructure nationwide, and the EPA announced another $7.2 billion in Fiscal Year 2026. The EPA has also continued to make billions of dollars available through its Water Infrastructure Finance and Innovation Act (WIFIA) financing program to accelerate large-scale water projects nationwide, and most state legislatures are also allocating funding. Water is a critical component of life and America’s treatment plants are extremely old. Many can no longer meet safe drinking water safety standards.  

Much of America’s water treatment infrastructure was built between the 1940s and 1970s and many facilities now require complete rehabilitation or the replacement of treatment equipment, pumps, electrical systems, controls, storage facilities, and distribution infrastructure. Communities must also respond to growing concerns over Per- and Polyfluoroalkyl substances (PFAS) contamination and other emerging pollutants that require advanced treatment technologies. While federal PFAS regulations continue to evolve, utilities are moving forward with projects that improve water quality, strengthen regulatory compliance, and protect public health.  

Growing populations, industrial development, recurring drought conditions, and the need for system resiliency are also creating additional demand for expanded treatment capacity and more resilient water infrastructure. Examples of upcoming projects follow, and they are very similar to projects currently on planning boards throughout the U.S. 

A $179 million water project is ready to move into the design phase in northwestern Phoenix, Arizona. Officials in the city’s Water Services Department will oversee an advanced water purification project that will allow Phoenix to produce drinking water from highly treated recycled wastewater. 

Plans call for an initial treatment capacity of up to eight million gallons per day, with provisions for future expansion. Significant infrastructure improvements will include coarse screening, influent pumping, grit removal, primary and secondary treatment, ultrafiltration, reverse osmosis, and ultraviolet advanced oxidation. City officials also anticipate adding disinfection systems, groundwater recharge facilities, and off-site water and sewer improvements. Once operational, the facility will work alongside the city’s existing advanced purification systems to expand the locally produced drinking water supply. 

Preliminary studies and design work are scheduled to begin later in 2026. City officials expect to issue a Construction Manager at Risk (CMAR) solicitation to support the design phase and potentially deliver construction as well. Construction is currently scheduled to begin in 2028. 

Officials in Wilmington, Delaware, will oversee a drinking water treatment initiative designed to reduce PFAS contaminants in the city’s source water while supporting regulatory compliance. Funding will include approximately $30 million through Delaware’s 2025 Drinking Water State Revolving Fund allocation, with additional local funding expected from the city. 

Plans call for identifying and implementing a cost-effective treatment approach for removing PFAS while integrating improvements into Wilmington’s existing drinking water system. The work will likely include treatment-process upgrades, electrical and mechanical improvements, controls, testing, and other system modifications necessary to protect water quality and maintain reliable operations. The project remains in the planning and pre-procurement phases, with construction anticipated to begin in 2028 following design completion, permitting, and procurement activities. 

The Newark City Public Works Department is planning an estimated $30 million rehabilitation of the community’s water treatment plant in Newark, Ohio. Originally constructed in the 1940s, the facility is approaching the end of its useful life, with more than 30 percent of its assets at or near failure. The project is intended to improve system reliability and ensure the continued delivery of dependable drinking water. 

The project will include a comprehensive rehabilitation of the treatment plant, the replacement of aging infrastructure and the renewal of critical treatment systems. Engineers will also evaluate whether the facility’s lime softening system should be expanded to meet future municipal demands and determine what additional improvements or capacity expansions will be needed to accommodate long-term water needs. Findings from the ongoing engineering study will establish the project’s final scope. 

The initiative is currently in the planning and preliminary engineering phase, with detailed design expected in 2027. Construction is anticipated to begin in 2028. 

City officials in Edwardsville, Illinois, will invest approximately $29 million to replace an outdated municipal water treatment plant. The investment will replace a facility that has served the community since the 1950s while expanding an adjacent treatment plant. City leaders view the project as a long-term investment that will strengthen the community’s ability to provide safe, reliable drinking water for decades to come. 

Project plans include expanding the existing treatment facility, upgrading supporting infrastructure, and integrating improvements throughout the city’s water system. Although treatment capacity will remain essentially unchanged, the improvements will significantly increase operational efficiency, enhance long-term reliability, reduce maintenance requirements, and extend the useful life of the system. Additional site improvements and utility work will also be required to support the upgraded facility. 

The project is currently in the pre-design phase. Solicitation documents are expected following completion of those activities. Once construction begins, officials estimate the project will require approximately two and one-half years to complete. 

The projects highlighted here reflect a national trend that shows no signs of slowing. Government officials recognize that safe and dependable drinking water is one of the most fundamental public services they provide, and they are investing heavily in upgrades. For engineering firms, construction companies, equipment manufacturers, technology providers, and specialty contractors, these projects represent a growing pipeline of opportunities that will continue for many years. 

Photo by Canva

For more of the latest from the expansive government marketplace, check Government Market News daily for new stories, insights and profiles from public sector professionals. Check out our national contracting newsletter here.

Related Content:

Grid modernizations fuel new wave of energy storage projects

Grid modernizations fuel new wave of energy storage projects

Battery energy storage has quickly become one of the fastest-growing segments of the nation's energy infrastructure market. Rapid population growth, expanding data center development, electrification, renewable energy integration, and increasing concerns about grid...

read more
Private capital meets government reality

Private capital meets government reality

 Because I, and the rest of the Strategic Partnerships team, spend every day working at a unique vantage point – the intersection of public and private sector connections – we see trends, issues, risks, and problems arising often before anything is obvious to most...

read more
America faces a new infrastructure funding reality

America faces a new infrastructure funding reality

America's public funding landscape is changing rapidly. As Congress continues to make appropriations decisions, federal agencies revise grant programs, and states finalize budgets for the coming fiscal year, one trend has become increasingly clear. State and local...

read more