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Water Costs



An extensive surface water network of rivers, streams, and lakes, complemented by ground water supplies that are very pronounced in certain regions of the state, guarantee an ample supply of water for industrial and commercial use. Treated water is distributed in Kentucky communities by nine investor owned water companies, twenty-two water associations, one hundred twenty-one water districts, and ninety-one municipal water utilities. The types of services and rates charged by water districts, water associations, and investor owned water companies are regulated by the Kentucky Public Service Commission. Many industries in the state withdraw water directly from Kentucky's extensive network of major rivers, manmade lakes, and ground water supplies. Concentrations of chemical and primary metals industries and electric power plants have developed in Kentucky along the Ohio River to profit from the abundant supplies of surface and ground water and from lower cost barge transportation. Industries withdrawing over 10,000 gallons of water daily from surface or ground water sources must obtain a permit from the Kentucky Department for Environmental Protection.

The cost of commercial and industrial water use in Kentucky varies by provider. Costs charged by specific providers are available from the PSC Tariff Library.

The Kentucky state sales tax (6.0%) applies to water consumption for non-residential use.



(To export this table into Microsoft Excel, right-click inside the table and select 'Export to Microsoft Excel' in the menu that appears.)

Water Cost in Kentucky   
Dollars per thousand gallons
Provider Average
Investor Owned  
Commercial $2.80
Industrial $1.84
Water Districts  
Commercial $1.47
Industrial $2.94
Water Associations  
Commercial $0.67
Industrial $4.90
Source: Kentucky Public Service Commission/2007 Annual Report Statistics








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