Evolving Water Challenges Drive Innovation: 15^th Annual Black & Veatch 2026 Water Report Highlights Path Forward

New insights highlight regulatory and demand pressures, the role of digital solutions and how integrated planning strengthens water systems

Water systems across the United States face rising pressures from aging infrastructure, regulatory uncertainty and supply constraints. The newly released Black & Veatch 2026 Water Report reveals how leading water utilities are navigating complexity through digital transformation and collaborative delivery to stay ahead.

Drawing on insights from more than 600 U.S. water industry stakeholders, the report benchmarks how utilities are evolving, from expanding capacity to modernizing aging infrastructure while finding innovative ways to extend and optimize the performance of critical systems.

As seen across recent Black & Veatch water report surveys, aging infrastructure tops the list of challenges, but this year’s survey results show steady momentum in adapting how utilities collaborate to keep pace with challenges. Respondents point to new opportunities in digital solutions, integrated planning and alternative delivery models that enable faster, more cost-effective infrastructure development as key to sustainable outcomes.

“Water utilities are being asked to do more than ever before, most importantly ensuring reliable supply in the face of increasing scarcity,” said Donnie Ginn, executive vice president, Integrated Water & Environmental Business, Black & Veatch. “As pressures continue, utilities and communities working toward advancing more integrated approaches will strengthen resilient and reliable water systems for the customers they serve.”

Now in its 15th year, the report underscores a traditional sector ready for digital innovation, strategic investment and collaborative project delivery.

Key themes explored in the 2026 report include:

• Sixty-six percent of respondents cite aging infrastructure as a top challenge;
• Seventy-one percent of utilities cite staffing as a barrier;
• Thirty-one percent of respondents cite funding/availability of capital as their overall top challenge, while 19% cite increasing/expanding regulation, signaling that cost pressure is outranking regulation as a core pressure point. Forty-five percent of utilities say funding will not be sufficient to meet capital needs over the next 5-10 years;
• Utility confidence in serving large industrial customers fell from 73% in 2024 to 60% in 2026;
• Seven in 10 (70%) say they collect sufficient data, but only 19% say they leverage it effectively;
• Nearly seven in ten (68%) respondents say they’ve performed a vulnerability study for some aspect of their utility/system;
• Sustainability is a stated priority for nearly eight in ten (79%) respondents;
• Nearly all respondents rate operational technology (OT) cybersecurity investment as important or very important

The report reflects a growing recognition that no single solution can address the sector’s challenges, highlighting the need to better integrate engineering, digital tools and cross-sector collaboration.

The water industry is increasingly turning toward lifecycle strategies that align planning, design, construction and operations — enabling utilities and industrial users to adapt more quickly to changing conditions while maintaining service reliability.

See how Black & Veatch is helping utilities and industry navigate these challenges at bv.com/water.

To download and read the full report, click here.

About Black & Veatch
Black & Veatch is a 100-percent employee-owned global engineering, procurement, consulting and construction company with a more than 100-year track record of innovation in human critical infrastructure. Since 1915, we have helped our clients improve the lives of people around the world by addressing resilience and reliability of our most important infrastructure and energy assets.