Stay informed with the LNN Daily Newsletter
Coaldale Town Council has moved to increase water rates as of April 1, 2026. (Image Credit: Lethbridge News Now)

Coaldale increasing water rates due to change by City of Lethbridge

Feb 5, 2026 | 11:30 AM

It will be no April Fool’s joke as people in Coaldale will soon find themselves paying more for water.

Coaldale town council voted at its meeting on Feb. 2, 2026, to increase water consumption rates for residents and businesses.

As of April 1, the rate will rise from $1.32 per cubic metre to $1.918 per cubic metre.

The Town of Coaldale explains in a news release that the decision was made after the City of Lethbridge increased the wholesale water rates it charges to regional customers.

The City completed two cost-of-service studies in 2023 and discovered that the wholesale water consumption rates it charges to its regional customers were below the cost of providing the service.

It has a variety of expenses like water treatment, pumping, storage and ongoing maintenance, and says those costs were not being fully recovered through the sale of treated water.

Lethbridge City Council amended Bylaw 3999, its Water Services Bylaw, in Sept. 2025 to establish new water consumption rates.

Those new rates came into effect on Jan. 1, 2026, which Coaldale council says triggered a need to adjust its own water consumption rates.

“Obviously, this wasn’t an adjustment anyone wanted to make,” says Coaldale Mayor Jack Van Rijn. “But because cost recovery is essential to maintaining safe, reliable water service, and because Coaldale buys its treated water from the Commission, it was ultimately unavoidable given the increase in wholesale cost”.

The new rates are expected to have the following impacts on homes and businesses in Coaldale:

  • Residences that consume 10 cubic meters of water per month will see an average increase of $9.67 on their monthly utility bills
  • Residences that consume 20 cubic meters of water per month will see an average increase of $16.34 on their monthly utility bills
  • Businesses that consume 100 cubic meters of water per month will see an average increase of $88.70 on their monthly utility bills
  • Businesses that consume 200 cubic meters of water per month will see an average increase of $155.40 on their monthly utility bills

“I know residents will be disappointed to see their utility bills go up, but it’s important to recognize that even with this increase, it is still more cost-effective for Coaldale to purchase treated water through the Commission than it would be for the Town to return to operating its own water treatment system,” Van Rijn explains.

He adds, “That’s ultimately why Coaldale moved away from treating its own water to begin with. Regional supply allows us to access a modern, professionally operated treatment system without having to build, staff, and maintain a full-scale plant locally, and it helps keep long-term costs lower for the community while ensuring a safe and reliable water supply.”

The Town says it will share more information on the rate increase in the coming weeks.

LNN has reached out to the City of Lethbridge for comments.